It should have a 3 position switch, by law the sidelights must operate without the headlights, I would suspect the switch is faulty or someomne has bodged the wiring...
First position is side lights only, second position is side and head lights.
I thought it was side lights engine off, day running light with engine running these days.
Not necessary on defenders when the engine is running then you will get 60% power to the dipped beam (headlights) when you have side lights on know as dim dip.
As of 2015 (cars produced from 2012 on) then yeah daylight running lights will be part of the MOT, these will most likely be the sidelights still as Volvos have always done although more and more are fitting dedicated daylight running lights. You do need to have ign off sidelights as well still I believe.
Not necessary on defenders when the engine is running then you will get 60% power to the dipped beam (headlights) when you have side lights on know as dim dip.
some do, some dont, not found any rhyme nor reason to which do or dont, mines a 96 300tdi, and it does do this...