Page 127 - The Motor Vehicles Act, 1988

SECTION 151 THE MOTOR VEHICLES ACT, 1988 113

(3) Where any such judgment or award as is referred to in sub-section (1) is obtained
from a court in a reciprocating country and in the case of a foreign judgment is, by
virtue of the provisions of section 13 of the Code of Civil Procedure, 1908 (5 of 1908),
conclusive as to any matter adjudicated upon by it, the insurer (being an insurer
registered under the Insurance Act, 1938 (4 of 1938), and whether or not that person is
registered under the corresponding law of the reciprocating country) shall be liable to
the person entitled to the benefit of the decree in the manner and to the extent specified
in sub-section (1), as if the judgment or award were given by a court in India:
PROVIDED that no sum shall be payable by the insurer in respect of any such
judgment or award unless, before the commencement of the proceedings in which the
judgment or award is given, the insurer had notice through the court concerned of the
bringing of the proceedings and the insurer to whom notice is so given is entitled under
the corresponding law of the reciprocating country, to be made a party to the proceedings
and to defend the action on grounds similar to those specified in sub-section (2).
(4) Where a certificate of insurance has been issued under sub-section (3) of section
147 to the person by whom a policy has been effected, so much of the policy as purports
to restrict the insurance of the persons insured thereby, by reference to any condition
other than those in sub-section (2) shall, as respects such liabilities as are required to be
covered by a policy under clause (b) of sub-section (1) of section 147, be of no effect.
(5) No insurer to whom the notice referred to in sub-section (2) or sub-section (3)
has been given shall be entitled to avoid his liability to any person entitled to the benefit
of any such judgment or award as is referred to in sub-section (1) or in such judgment
as is referred to in sub-section (3) otherwise than in the manner provided for in sub-
section (2) or in the corresponding law of the reciprocating country, as the case may be.
(6) If on the date of filing of any claim, the claimant is not aware of the insurance
company with which the vehicle had been insured, it shall be the duty of the owner of
the vehicle to furnish to the tribunal or court the information as to whether the vehicle
had been insured on the date of the accident, and if so, the name of the insurance company
with which it is insured.
Explanation : For the purposes of this section,—
(a) “award” means an award made by the Claims Tribunal under section 168;
(b) “Claims Tribunal” means a Claims Tribunal constituted under section 165;
(c) “liability covered by the terms of the policy” means the liability which is
covered by the policy or which would be so covered but for the fact that
the insurer is entitled to avoid or cancel or has avoided or cancelled the
policy; and
(d) “material fact” and “material particular” means, respectively, a fact or
particular of such a nature as to influence the judgment of a prudent insurer
in determining whether he shall take the risk and, if so, at what premium
and on what conditions.
151. Rights of third parties against insurers on insolvency of insured
(1) Where under any contract of insurance affected in accordance with the
provisions of this Chapter, a person is insured against liabilities which he may incur to
third parties, then—