Page 48 - The Motor Vehicles Act, 1988

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

judgment is, by virtue of the provisions of section 13 of the Code of Civil
Procedure, 1908 (5 of 1908) conclusive as to any matter adjudicated upon by it,
the insurer (being an insurer registered under the Insurance Act, 1938 (4 of
1938) and whether or not that person is registered under the corresponding
law of the reciprocating country) shall be liable to the person entitled to the
benefit of the decree in the manner and to the extent specified in sub-section
(1), as if the judgment or award were given by a court in India:
PROVIDED that no sum shall be payable by the insurer in respect of any
such judgment or award unless, before the commencement of the proceedings
in which the judgment or award is given, the insurer had notice through the
court concerned of the bringing of the proceedings and the insurer to whom
notice is so given is entitled under the corresponding law of the reciprocating
country, to be made a party to the proceedings and to defend the action on
grounds similar to those specified in sub-section (2).
(4) Where a certificate of insurance has been issued under sub-section (3)
of section 147 to the person by whom a policy has been effected, so much of the
policy as purports to restrict the insurance of the persons insured thereby, by
reference to any condition other than those in sub-section (2) shall, as respects
such liabilities as are required to be covered by a policy under clause (b) of sub-
section (1) of section 147, be of no effect.
(5) No insurer to whom the notice referred to in sub-section (2) or sub-
section (3) has been given shall be entitled to avoid his liability to any person
entitled to the benefit of any such judgment or award as is referred to in sub-
section (1) or in such judgment as is referred to in sub-section (3) otherwise
than in the manner provided for in sub-section (2) or in the corresponding law
of the reciprocating country, as the case may be.
(6) If on the date of filing of any claim, the claimant is not aware of the
insurance company with which the vehicle had been insured, it shall be the
duty of the owner of the vehicle to furnish to the tribunal or court the information
as to whether the vehicle had been insured on the date of the accident, and if
so, the name of the insurance company with which it is insured.
Explanation : For the purposes of this section,—
(a) “award” means an award made by the Claims Tribunal under
section 168;
(b) “Claims Tribunal” means a Claims Tribunal constituted under
section 165;
(c) “liability covered by the terms of the policy” means the liability
which is covered by the policy or which would be so covered but
for the fact that the insurer is entitled to avoid or cancel or has
avoided or cancelled the policy; and
(d) “material fact” and “material particular” mean, respectively, a
fact or particular of such a nature as to influence the judgment of
a prudent insurer in determining whether he shall take the risk
and, if so, at what premium and on what conditions.