Liability of insurance contracts: Foreign or international railway rolling stock
The Finance Act 1994, Schedule 7A Paragraph 9(1) exempts a contract:
… if it relates only to foreign or international railway rolling stock and is a contract of general insurance of a relevant class.
Paragraph 9(2) of Schedule 7A defines a relevant class:
… if it insures against risks arising from or in relation to
(a) railway rolling stock, or
(b) general liability to third parties,
Class 4 of Schedule 1 - part I of the RAO 2001, covers loss of or damage to railway rolling stock, Class 13 covers third party liability but not risks covered by Class 10 (Motor vehicle liability), Class 11 (Aircraft liability) or Class 12 (Liability of ships).
The purpose of the relief is, broadly, to reflect that available for the commercial shipping and aviation sectors.
Definition of “foreign or international railway rolling stock”
Paragraph 9(3) of Schedule 7A defines “foreign or international railway rolling stock” as:
… railway rolling stock used principally for journeys taking place wholly or partly outside the United Kingdom.
- By journeys taking place wholly or partly outside the UK, we mean between two places outside the UK or between a place in the UK and a place abroad.
- “Railway rolling stock” means locomotives, passenger coaches, dining cars and all goods carrying trucks, and wagons etc.