20Policy of insurance to continue notwithstanding change of ownership of vehicle

##### 20. Policy of insurance to continue notwithstanding change of ownership of vehicle (1) Notwithstanding any agreement to the contrary, a policy of insurance issued under and for the purposes of this Act — (a) shall not be deemed to be cancelled or otherwise deemed to terminate solely by reason of a change of ownership of the vehicle in relation to which the policy was issued; but (b) shall, subject to any lawful termination thereof, enure in favour of every person who, during the period for which the policy was granted or renewed, becomes an owner for the time being of the vehicle in relation to which the policy was issued and in favour of every person who during that period drives that vehicle whether with or without the consent of the owner. (2) So long as a policy of insurance is in force as aforesaid every owner of the vehicle in relation to which the policy was issued (whether originally a party to the policy or not), and every person who during that period drives the vehicle whether with or without the consent of the owner shall be bound by all the terms, warranties and conditions in the policy as if he had expressly agreed to them. [Section 20 2 inserted as s. 19A: No. 40 of 1944 s. 7; amended: No. 36 of 1954 s. 7.]