Hire-Purchase Act 1959

An owner may require any goods comprised in a hire‑purchase agreement to be insured in the names of the owner and the hirer against any risk that he thinks fit for the period of the agreement at the expense of the hirer.

Where an owner requires a hirer to insure against any risk, the owner shall supply a list of not less than 20 insurers that are acceptable to the owner.

An owner shall not refuse to enter into a hire‑purchase agreement with a person who effects insurance of the goods for the period of the agreement against such risks and subject to such terms, conditions, and exceptions as are required by the owner in the names of the owner and the hirer with an insurer on the list supplied by the owner pursuant to subsection (2).

An owner shall not require a hirer to obtain insurance against risks or subject to terms, conditions, and exceptions that the owner does not require if he arranges the insurance.

Where, in respect of the insurance of goods comprised in a hire‑purchase agreement, the insurer allows a no‑claim rebate or a rebate of a similar nature, the hirer under the agreement is entitled to the benefit of the rebate and any person who knowingly pays or allows any such rebate to an owner commits an offence against this Act.

Where —

an insurer or other person pays or confers any commission or other benefit to or upon an owner, dealer, or other person in respect of a contract of insurance required by the owner under this section; and

the amount or value of the commission or benefit (or where separate commissions or benefits have been paid the aggregate amount or value thereof) exceeds 20% of the total amount payable by way of premium or premiums under the contract of insurance,