Page 124 - The Motor Vehicles Act, 1988

110 THE MOTOR VEHICLES ACT, 1988 SECTION 147

(c) any State Transport Undertaking:
PROVIDED that no such order shall be made in relation to any such authority
unless a fund has been established and is maintained by that authority in such manner
as may be prescribed by appropriate Government.
Explanation : For the purposes of this sub-section, “appropriate Government” means
the Central Government or a State Government, as the case may be, and—
(i) in relation to any corporation or compnay owned by the Central
Government or any State Government, means the Central Government or
that State Government;
(ii) in relation to any corporation or company owned by the Central
Government and one or more State Governments, means the Central
Government;
(iii) in relation to any other State Transport Undertaking or any local authority,
means that Government which has control over that undertaking or
authority.
147. Requirement of policies and limits of liability
(1) In order to comply with the requirements of this Chapter, a policy of insurance
must be a policy which—
(a) is issued by a person who is an authorised insurer; and
(b) insures the person or classes of persons specified in the policy to the extent
specified in sub-section (2)—
(i) against any liability which may be incurred by him in respect of the
death of or bodily injury to any person including owner of the goods
or his authorised representative carried in the motor vehicle or damage
to any property of a third party caused by or arising out of the use of
the motor vehicle in a public place;
(ii) against the death of or bodily injury to any passenger of a transport
vehicle, except gratuitous passengers of a goods vehicle, caused by or
arising out of the use of the motor vehicle in a public place.
Explanation : For the removal of doubts, it is hereby clarified that the death of or
bodily injury to any person or damage to any property of a third party shall be deemed
to have been caused by or to have arisen out of, the use of a vehicle in a public place,
notwithstanding that the person who is dead or injured or the property which is damaged
was not in a public place at the time of the accident, if the act or omission which led to
the accident occurred in a public place.
(2) Notwithstanding anything contained under any other law for the time being
in force, for the purposes of third party insurance related to either death of a person or
grievous hurt to a person, the Central Government shall prescribe a base premium and
the liability of an insurer in relation to such premium for an insurance policy under
sub-section (1) in consultation with the Insurance Regulatory and Development
Authority.
(3) A policy shall be of no effect for the purposes of this Chapter unless and until
there is issued by the insurer in favour of the person by whom the policy is effected a
certificate of insurance in the prescribed form and containing the prescribed particulars