Page 128 - The Motor Vehicles Act, 1988

114 THE MOTOR VEHICLES ACT, 1988 SECTION 152

(a) in the event of the person becoming insolvent or making a composition or
arrangement with his creditors; or
(b) where the insured person is a company, in the event of a winding-up order
being made or a resolution for a voluntary winding-up being passed with
respect to the company or of a receiver or manager of the company’s
business or undertaking being duly appointed, or of possession being taken
by or on behalf of the holders of any debentures secured by a floating
charge of any property comprised in or subject to the charge,
if, either before or after that event, any such liability is incurred by the insured
person his rights against the insurer under the contract in respect of the liability
shall, notwithstanding anything to the contrary in any provision of law, be
transferred to and vest in the third party to whom the liability was so incurred.
(2) Where an order for the administration of the estate of a deceased debtor is
made according to the law of insolvency, then, if any debt provable in insolvency is
owing by the deceased in respect of a liability to a third party against which he was
insured under a contract of insurance in accordance with the provisions of this Chapter,
the deceased debtor’s rights against the insurer in respect of that liability shall,
notwithstanding anything to the contrary in any provision of law, be transferred to and
vest in the person to whom the debt is owing.
(3) Any condition in a policy issued for the purposes of this Chapter purporting,
either directly or indirectly, to avoid the policy or to alter the rights of the parties
thereunder upon the happening to the insured person of any of the events specified in
clause (a) or clause (b) of sub-section (1) or upon the making of an order for the
administration of the estate of a deceased debtor according to the law of insolvency,
shall be of no effect.
(4) Upon a transfer under sub-section (1) or sub-section (2), the insurer shall be
under the same liability to the third party as he would have been to the insured person,
but—
(a) if the liability of the insurer to the insured person exceeds the liability of
the insured person to the third party, nothing in this Chapter shall affect
the rights of the insured person against the insurer in respect of the excess
amount; and
(b) if the liability of the insurer to the insured person is less than the liability
of the insured person to the third party, nothing in this Chapter shall affect
the rights of the third party against the insured person in respect of the
balance amount.
152. Duty to give information as to insurance
(1) No person against whom a claim is made in respect of any liability referred to
in clause (b) of sub-section (1) of section 147 shall, on demand by or on behalf of the
person making the claim, refuse to state whether or not he was insured in respect of
that liability by any policy issued under the provisions of this Chapter, or would have
been so insured if the insurer had not avoided or cancelled the policy, nor shall he
refuse, if he was or would have been so insured, to give such particulars with respect to
that policy as were specified in the certificate of insurance issued in respect thereof.