Counter-terrorism police in the United Kingdom are investigating a car explosion on Remembrance Day at Liverpool Women's Hospital that killed one person and injured another.

Armed officers arrested three people under the UK's Terrorism Act following raids on residences throughout the city amid worries of a larger plot.

At 10.59 am, patients and staff at the women's hospital were startled by the sound of a tremendous explosion.

Police officers, fire personnel, and Army bomb disposal experts rushed to the site to find a taxi on fire with a passenger still inside.

The driver of the vehicle, identified locally as David Perry, escaped and was being treated for significant but non-life-threatening injuries on Sunday night.

The Women's Hospital is located just 1.6 kilometers from Liverpool Cathedral, hosting a Remembrance Day service for military members, veterans, and civic leaders.

On Sunday night, there were unsubstantiated claims that the cab driver was redirected to the hospital after becoming suspicious of his passenger but was injured when a device exploded.

Additionally, it was asserted that the driver could exit the vehicle and lock the suspected suspect inside to avert further harm.

Unconfirmed claims on Facebook cited the cab driver's courageous acts, according to UK media.

"He is a hero, when he noticed the bomb, he locked the scumbag in the car," one man wrote.

"He put his life on the line and nearly paid the ultimate price to save others – apparently not giving anything a second thought besides making sure he went above and beyond to keep the people of our city safe," another added.

Police announced that they were investigating with assistance from Merseyside Police.

According to a security source, the automobile exploded just before it came to a complete stop outside the hospital.

According to a witness who witnessed the incident, "there was a large explosion that blew out all of the windows and launched the windscreen into the air." White smoke billowed from the automobile. Remarkably, the driver survived, let alone escaped."

Counter-terror police are investigating the possibility that the detonator exploded, but the main charge did not.

The Prime Minister, Boris Johnson, stated that his thoughts were with those impacted, and the Home Secretary, Priti Patel, said that she was kept informed of events.

"I am being kept regularly updated on the horrific incident at Liverpool Women's Hospital," she wrote in a tweet. Our police and emergency services are working diligently to determine what occurred, and they deserve the time and space to do so."

Confirming the arrest of three suspects in the city, a spokesman for Counter Terrorism Policing North West said: "The men - aged 29, 26, and 21 - were detained in the Kensington area of the city and arrested under the Terrorism Act, in connection with the incident which occurred just before 11 am on Sunday 14 November."

Specialist investigators questioned the three suspects on Sunday night.

A counter-terror spokesman described the incident as follows: "The car's passenger - a man - was declared dead at the scene and has not been formally identified." The driver, also a man, was hurt at the incident and is currently in a stable condition at the hospital."

Armed police cordoned off Rutland Ave in Liverpool's Sefton district shortly after the explosion and searched a residence.

Residents of the Victorian street were warned to stay indoors as armed officers swamped the neighborhood.

Neighbors reported the structure under search had been divided into flats but insisted the property had been vacant for some time.

Serena Kennedy, Merseyside Chief Constable, said at the scene of the explosion: "We are still investigating what happened and it may be some time before we can confirm anything."

"We are keeping an open mind as to what caused the explosion but given how it has happened, out of caution, counter-terrorism police are leading the investigation, supported by Merseyside Police."

According to the force, "this has not been declared a terrorist incident at this stage although out of caution, CT detectives are leading as we try to understand the circumstances behind the explosion."