Page 139 - The Motor Vehicles Act, 1988

SECTION 148 THE MOTOR VEHICLES ACT, 1988 125

PROVIDED that a policy shall not be required—
(i) to cover liability in respect of the death, arising out of and in the course of his
employment, of the employee of a person insured by the policy or in respect of
bodily injury sustained by such an employee arising out of and in the course of his
employment other than a liability arising under the Workmen’s Compensation
Act, 1923 (8 of 1923) in respect of the death of, or bodily injury to, any such
employee—
(a) engaged in driving the vehicle, or
(b) if it is a public service vehicle engaged as a conductor of the vehicle or in
examining tickets on the vehicle, or
(c) if it is a goods carriage, being carried in the vehicle, or
(ii) to cover any contractual liability.
Explanation : For the removal of doubts, it is hereby declared 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) Subject to the proviso to sub-section (1), a policy of insurance referred to in sub-section
(1), shall cover any liability incurred in respect of any accident, up to the following limits,
namely,—
(a) save as provided in clause (b), the amount of liability incurred;
(b) in respect of damage to any property of a third party, a limit of rupees six thousand:
PROVIDED that any policy of insurance issued with any limited liability and in force,
immediately before the commencement of this Act, shall continue to be effective for a period of
four months after such commencement or till the date of expiry of such policy, whichever is
earlier.
(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 of any condition
subject to which the policy is issued and of any other prescribed matters; and different forms,
particulars and matters may be prescribed in different cases.
(4) Where a cover note issued by the insurer under the provisions of this Chapter or the
rules made thereunder is not followed by a policy of insurance within the prescribed time, the
insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify
the fact to the registering authority in whose records the vehicle to which the cover note relates
has been registered or to such other authority as the State Government may prescribe.
(5) Notwithstanding anything contained in any law for the time being in force, an insurer
issuing a policy of insurance under this section shall be liable to indemnify the person or classes
of persons specified in the policy in respect of any liability which the policy purports to cover in
the case of that person or those classes of persons.
148. Validity of policies of insurance issued in reciprocating countries
Where in pursuance of an arrangement between India and any reciprocating country, the
motor vehicle registered in the reciprocating country operates on any route or within any area
common to the two countries and there is in force in relation to the use of the vehicle in the
reciprocating country, a policy of insurance complying with the requirements of the law of
insurance in force in that country, then, notwithstanding anything contained in section 147 but