(1) A policy of insurance shall be an approved policy of insurance within the meaning of this Act if, but only if, it complies with all the following conditions, that is to say: -
(a) it is issued by a vehicle insurer to a person (in this Act referred to as the insured) named therein; and
(b) the vehicle insurer by whom it is issued binds himself by it to insure the insured against all sums without limit which the insured or his personal representative shall become liable to pay to any person (other than the excepted persons as defined in this Act) whether by way of damages or costs on account of injury to person or property occasioned by the negligent driving during the period (in this Act referred to as the period of cover) specified in that behalf in such policy of a mechanically propelled vehicle to which such policy relates by the insured or by any of such other persons (if any) as are mentioned in that behalf in such policy; and
(c) the liability of the insurer under the pol