A typical car insurance policy operative clause might read:
‘Now this policy witness that in respect of accidental injury, loss or damage, occurring in Great Britain, Northern Ireland, the Republic of Ireland, the Isle of Man or the Channel Islands (or in the course of transit by sea between any ports therein including processes of loading and unloading) during the period of insurance or during any subsequent period for which the company may accept payment for the renewal of this policy and subject to the terms exceptions and conditions contained herein or endorsed hereon’
Followed by the various policy sections describing the extent of the cover.
Under each section a list of exclusions is given, while at the end of the sections there is a clause headed ‘General Exceptions’.
The former exclusions relate only to the sections to which they belong but for any loss, damage or liability caused or incurred in circumstances which come within the terms of the ‘General Exceptions’, the insurers are not liable under the policy at all.
The Car Insurance policy operative clause sets out the territorial limits, incorporates the period of insurance stated in the schedule, makes provision for renewal and incorporates the terms, exceptions, conditions and endorsements of the policy. The territorial limits are to some extent amended by the E.C. directive requiring minimum cover to be included for all member countries.