(1) A guarantee shall be an approved guarantee for the purposes of this Act if, but only if, it complies with the following conditions;
(a) it is issued by a vehicle insurer or a vehicle guarantor to a person (in this Act referred to as the principal debtor) named therein;
(b) the insurer or guarantor by whom it is issued binds himself by it to guarantee the payment by the principal debtor or his personal representative of all sums without limit which the principal debtor or his personal representative shall become liable to pay to any person (exclusive of the excepted persons) whether by way of damages or costs on account of injury to person or property caused by the negligent use during the period (in this Act referred to as the period of cover) specified in that behalf in the guarantee, of a vehicle to which the guarantee relates, by the principal debtor or by any of such other persons (if any) as are mentioned or otherwise indicated in that behalf in the guarantee;
(c) the liabilit
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