Section 26
Section 26
An owner shall cause to be insured in the name of the hirer—
(a)
motor vehicles comprised in a hire-purchase agreement, for the first year only; and
(b)
all other goods comprised in a hire-purchase agreement, for the duration of time that the goods remain under hire-purchase, against any risks that he thinks fit.
(2)
Where the goods comprised in a hire-purchase agreement is a motor vehicle, it shall be the duty of the hirer to cause the said vehicle to be insured in respect of the second and all subsequent years that the motor vehicle remains under hire-purchase.
(3)
An owner shall not require a hirer to insure any risks with any particular registered insurer.
(4)
An owner who fails to comply with subsection (1) and a hirer who fails to comply with subsection (2) shall be guilty of an offence under this Act.
(5)
A hirer shall, not less than fourteen days before the date of expiry of a policy of insurance in respect of a motor vehicle, inform the owner that he has renewed the said policy or that he has caused a fresh policy of insurance to be issued.
Hire-Purchase 45
(6)
Where the hirer has failed to renew the policy of insurance or to cause a fresh policy to be issued, the owner shall be at liberty to cause the motor vehicle to be insured and any costs thereby incurred shall be borne by the hirer.
(7)
All amounts payable in respect of insurance, excluding such amounts payable in respect of the insurance of motor vehicles for the second and subsequent years, shall form part of the hire-purchase price.
(8)
Where in respect of the insurance of goods comprised in a hire-purchase agreement, the insurer allows any commission or rebate including a no-claim rebate or any other rebate of a similar nature (as distinct from legitimate agency commission) to an owner who is also a bona fide agent of an insurer and who arranges the insurance on behalf of the hirer, the hirer under the hire-purchase agreement is entitled to the benefit of the commission and the rebate and any person who knowingly pays or allows any such commission or rebate to an owner and any owner who receives such commission or rebate shall be guilty of an offence under this Act.
Powers of court in relation to insurance contracts associated with hire-purchase agreements