Page 123 - The Motor Vehicles Act, 1988

SECTION 146 THE MOTOR VEHICLES ACT, 1988 109

(b) “certificate of insurance” means a certificate issued by an authorised insurer
in pursuance of section 147 and includes a cover note complying with such
requirements as may be prescribed, and where more than one certificate
has been issued in connection with a policy, or where a copy of a certificate
has been issued, all those certificates or that copy, as the case may be;
(c) “grievous hurt” shall have the same meaning as assigned to it in section
320 of the Indian Penal Code (45 of 1860);
(d) “hit and run motor accident” means an accident arising out of the use of a
motor vehicle or motor vehicles the identity whereof cannot be ascertained
in spite of reasonable efforts for the purpose;
(e) “Insurance Regulatory and Development Authority” means the Insurance
Regulatory and Development Authority established under section 3 of the
Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);
(f) “policy of insurance” includes certificate of insurance;
(g) “property” includes roads, bridges, culverts, causeways, trees, posts,
milestones and baggage of passengers and goods carried in any motor
vehicle;
(h) “reciprocating country” means any such country as may on the basis of
reciprocity be notified by the Central Government in the Official Gazette
to be a reciprocating country for the purposes of this Act;
(i) “third party” includes the Government, the driver and any other co-worker
on a transport vehicle.
146. Necessity for insurance against third party risks

(1) No person shall use, except as a passenger, or cause or allow any other person
to use, a motor vehicle in a public place, unless there is in force, in relation to the use of
the vehicle by that person or that other person, as the case may be, a policy of insurance
complying with the requirements of this Chapter:
PROVIDED that in the case of a vehicle carrying, or meant to carry, dangerous or
hazardous goods, there shall also be a policy of insurance under the Public Liability
Insurance Act, 1991 (6 of 1991).
Explanation : For the purposes of this sub-section, a person driving a motor vehicle
merely as a paid employee, while there is in relation to the use of the vehicle no such
policy in force as is required by this sub-section, shall not be deemed to act in
contravention of the sub-section unless he knows or has reason to believe that there is
no such policy in force.
(2) The provisions of sub-section (1) shall not apply to any vehicle owned by the
Central Government or a State Government and used for purposes not connected with
any commercial enterprise.
(3) The appropriate Government may, by order, exempt from the operation of
sub-section (1), any vehicle owned by any of the following authorities, namely:—
(a) the Central Government or a State Government, if the vehicle is ued for
purposes connected with any commercial enterprise;
(b) any local authority;