Page 44 - The Motor Vehicles Act, 1988

(xliv) THE MOTOR VEHICLES (AMENDMENT) ACT, 2019

(f) “policy of insurance” includes certificate of insurance;
(g) “property” includes roads, bridges, culverts, causeways, trees,
posts, milestones and baggage of passengers and goods carried
in any motor vehicle;
(h) “reciprocating country” means any such country as may on the
basis of reciprocity be notified by the Central Government in the
Official Gazette to be a reciprocating country for the purposes of
this Act;
(i) “third party” includes the Government, the driver and any other
co-worker on a transport vehicle.
146. Necessity for insurance against third party risks
(1) No person shall use, except as a passenger, or cause or allow any other
person to use, a motor vehicle in a public place, unless there is in force, in
relation to the use of the vehicle by that person or that other person, as the case
may be, a policy of insurance complying with the requirements of this Chapter:
PROVIDED that in the case of a vehicle carrying, or meant to carry,
dangerous or hazardous goods, there shall also be a policy of insurance under
the Public Liability Insurance Act, 1991 (6 of 1991).
Explanation : For the purposes of this sub-section, a person driving a motor
vehicle merely as a paid employee, while there is in relation to the use of the
vehicle no such policy in force as is required by this sub-section, shall not be
deemed to act in contravention of the sub-section unless he knows or has reason
to believe that there is no such policy in force.
(2) The provisions of sub-section (1) shall not apply to any vehicle owned
by the Central Government or a State Government and used for purposes not
connected with any commercial enterprise.
(3) The appropriate Government may, by order, exempt from the operation
of sub-section (1), any vehicle owned by any of the following authorities,
namely:—
(a) the Central Government or a State Government, if the vehicle is used for
purposes connected with any commercial enterprise;
(b) any local authority;
(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 company owned by the Central
Government or any State Government, means the Central Government
or that State Government;