Hire-Purchase Act 1969 · 2020 Revised Edition · Part 6 · Insurance
26. Restrictions on owner’s rights to require insurance
Feedback & supportAn owner shall not require a hirer to insure any such risk with any particular licensed insurer.
owner
“owner” means a person by whom goods are bailed to a hirer under a hire‑purchase agreement or a conditional sale agreement and includes a person whom the owner’s rights or liabilities under the agreement have passed by assignment or by operation of law;
An owner shall not refuse to enter into a regulated agreement with a person who effects insurance of the goods for the period of the agreement against such risks and subject to such reasonable terms, conditions and exceptions as are required by the owner in the names of the owner and the hirer with a licensed insurer if the owner has no other grounds upon which the owner could reasonably refuse to enter into the agreement.
regulated agreement
“regulated agreement” means a hire-purchase agreement or a conditional sale agreement which relates to the goods specified in the First Schedule, but does not include any agreement in which the hirer is engaged in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement;
An owner shall not require a hirer to obtain insurance against risks or subject to terms, conditions and exceptions that the owner would not require if he arranged the insurance.
hirer
“hirer” means the person who takes or has taken goods from an owner under a hire‑purchase agreement or a conditional sale agreement and includes a person to whom the hirer’s rights or liabilities under the agreement have passed by assignment or by operation of law;
Where any goods comprised in a regulated agreement are insured in the joint names of the owner and the hirer against any risk with a particular licensed insurer, there shall be an implied condition in the agreement that the hirer shall not, during the period of the agreement, insure those goods against any risk with another licensed insurer without first informing the owner.
goods
“goods” includes any replacement or renewal by the hirer of any part or parts of any goods and any accessory added or addition made to any goods by the hirer during the period of the hiring;