Necessity of third party insurance? Who are exempted from it

Section 146 of the Motor Vehicles Act, 1988 provides that no person shall use ( except as a passenger), or allow any other person to use, a motor vehicle in a public place, unless the vehicle is covered by a policy of insurance complying with the requirement of the Act. Read more

Provisions under Motor Vehicles Act regarding Transfer of Certificate of Insurance in India

The 1988 Act requires issue of a Certificate of Insurance by the insurers as proof of Third party insurance to satisfy the requirements of Chapter XI of the Act. The Certificate of Insurance Form 51 must be in the form prescribed under the Motor Vehicles Rules framed under the Act. Certificate is to be issued by the “Authorized Insurer and Authorized Government insurance Fund” who are authorized to do general insurance business in India. Certificate of insurance includes Cover Note and Policy of Insurance includes ‘Certificate of Insurance.” Read more

How Motor third party insurance was made compulsory in India?

A Certificate of Insurance must be carried in the vehicle as a proof of such insurance. For all vehicles registered with Regional Transport Authorities, third party insurance is compulsory as per Motor Vehicle Act. Third party liability is unlimited however, there is a statutory limit for Third party property damage of Rs. 6000/-.Legally, no motor vehicle is allowed to be driven on the road in India without valid insurance.

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10% cars in India run without compulsory third party insurance cover

Concerned at the low number of vehicle owners going for Third Party Insurance in India, the Ministry of Road Transport and Highways (MORTH) is putting together a data of all such vehicles to gauge the exact number of offenders. All states and union territories have been told to start special drives and to take corrective steps to ensure the vehicle owners comply with the law.

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SC wants fund for mishap victims

The Supreme Court has suggested creating a special fund to compensate three categories of vehicle accident victims who are usually Read more