Page 142 - The Motor Vehicles Act, 1988

128 THE MOTOR VEHICLES ACT, 1988 SECTION 151

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 there- under 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
persons to the third party, nothing in this Chapter shall affect the rights of the
insured person against the insurer in respect of the excess, 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.
151. 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 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.
(2) In the event of any person becoming insolvent or making a composition or arrangement
with his creditors or in the event of an order being made for the administration of the estate of a
deceased person according to the law of insolvency, or in the event of a winding up order being
made or resolution for a voluntary winding up being passed with respect to any 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 on any property comprised in or subject to the charge, it shall be the duty of the insolvent
debtor, personal representative of the deceased debtor or company, as the case may be, or the
official assignee or receiver in insolvency, trustee, liquidator, receiver or manager, or person in
possession of the property to give at the request of any person claiming that the insolvent debtor,
deceased debtor or company is under such liability to him as is covered by the provisions of this
Chapter, such information as may reasonably be required by him for the purpose of ascertaining
whether any rights have been transferred to and vested in him by section 150, and for the purpose
of enforcing such rights, if any; and any such contract of insurance as purports whether directly
or indirectly to avoid the contract or to alter the rights of the parties thereunder upon the giving
of such information in the events aforesaid, or otherwise to prohibit or prevent the giving thereof