Page 45 - The Motor Vehicles Act, 1988

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

(ii) in relation to any corporation or company owned by the Central
Government and one or more State Governments, means the Central
Government;
(iii) in relation to any other State Transport Undertaking or any local authority,
means that Government which has control over that undertaking or
authority.
147. Requirement of policies and limits of liability
(1) In order to comply with the requirements of this Chapter, a policy of
insurance must be a policy which—
(a) is issued by a person who is an authorised insurer; and
(b) insures the person or classes of persons specified in the policy to the
extent specified in sub-section (2)—
(i) against any liability which may be incurred by him in respect of
the death of or bodily injury to any person including owner of
the goods or his authorised representative carried in the motor
vehicle or damage to any property of a third party caused by or
arising out of the use of the motor vehicle in a public place;
(ii) against the death of or bodily injury to any passenger of a
transport vehicle, except gratuitous passengers of a goods vehicle,
caused by or arising out of the use of the motor vehicle in a public
place.
Explanation : For the removal of doubts, it is hereby clarified 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) Notwithstanding anything contained under any other law for the time
being in force, for the purposes of third party insurance related to either death
of a person or grievous hurt to a person, the Central Government shall prescribe
a base premium and the liability of an insurer in relation to such premium for
an insurance policy under sub-section (1) in consultation with the Insurance
Regulatory and Development Authority.
(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) Notwithstanding anything contained in this Act, a policy of insurance
issued before the commencement of the Motor Vehicles (Amendment) Act, 2019
shall be continued on the existing terms under the contract and the provisions
of this Act shall apply as if this Act had not been amended by the said Act.