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MV Act Provisions (Insurance)

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55 views3 pages

MV Act Provisions (Insurance)

Uploaded by

gkvishwanath028
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SECTIONS OF M.V.

ACT RELEVANT TO INSURANCE

Amended
Section as
per M.V.
Amendment
Act, 2019
Sec. 3 No person shall drive a vehicle without valid Driving Licence
Sec. 4 (1) No person under the age of 18 years shall drive a vehicle in a public
place. Motorcycle with engine capacity less than 50 cc can be driven
by a person who has completed 16 years.
(2) No person under 20 years can drive a Transport Vehicle
(3) No person shall be issued a Learner’s Licence unless he is eligible to
drive the particular class of vehicle.
Sec. 5 No owner of vehicle shall allow a person to drive a vehicle without a valid
Driving Licence
Sec.146 Compulsory Third Party Insurance :
1) No Vehicle shall ply on a public place without a valid Third Party
Insurance
2) For vehicles carrying hazardous goods, Public Liability Insurance (Act
Policy) is mandatory.
3) Govt Vehicles are exempted from compulsory TP Insurance
Sec.147 Requirements of a Third Party Insurance Policy –
Should cover
(a) Bodily injury or Death to any Third Party, including owner of
representative of Goods carried in the vehicle
(b) Third Party Property Damage
(c) Bodily injury or Death to any fare paying passenger carried in a Passenger
Service Vehicle (except gratuitous passengers)
Sec.149 (1)Insurance Company to designate an Officer for settlement of claim.
(2)Designated Office to give an offer of settlement to the Tribunal within 30
days of receipt of claim intimation.
(3) (a)If Claimant accepts the Offer :
(i) tribunal has to record the settlement and pass Order.
(ii)Insurance Company has to deposit the offered amount within 30
days of receipt of Order.
(b) If claimant rejects the offer, tribunal has to fix a hearing
date for adjudication of the case on merits
Sec.150 (1) Duty of Insurer to satisfy the Award passed by Court alongwith interest
and costs to the decree holder (irrespective of whether the Insurer is
entitled to cancel the policy or has actually cancelled the policy)
Sec.150 (2) Insurer is not liable to pay any amount under the policy unless Notice of
proceedings has been issued to the Insurer by Court before commencement
of trial and an opportunity is provided to defend the case on the following
grounds :

a) Breach of Policy conditions :

(i) Condition which excludes the use of vehicle for


A – Hire of Reward (where the permit does not allow plying for Hire of
Reward.
B – Organised Racing/Speed Testing
C – For any purpose not allowed by the Permit
D – Without side car where the vehicle is a two wheeler
(ii) Condition excluding driving of vehicle by a person who does not hold a
valid Driving Licence or is disqualified from holding a Driving Licence or was
driving under the influence of alcohol.

(iii) A condition excluding Liability for War and allied perils

b) Policy obtained by non-disclosure of material fact or false


disclosure

c) Non-receipt of Premium as per Sec.64VB of Insurance Act, 1938

(6) Duty of owner of Vehicle to provide details of Insurance Policy to the


Court/Tribunal is the claimant is unaware of the policy details.

Sec.151 Insolvency of Insured – Rights of Third Parties against Insured is protected


even if Insured becomes Insolvent. In such a case, Right of Insured against
the Insurer shall be transferred to the Third Party claimant.
Sec.152 Duty of Insured to provide details of Insurance to claimant. Duty of Legal
Heirs/Successors to provide details of Insurance to Claimant if the Insured
dies or becomes insolvent
Sec.153 Settlement between Insured and Insurers :
1) No settlement made between Insured and Insurers shall be valid unless
the Claimant is a party to the settlement
2)Tribunal to ensure that such settlement is fair and reasonable
3) No settlement between Insured and Insurer made after the Insured has
become insolvent, shall be binding on any Third Party.
Sec.155 In case of death of Insured after the accident, the liability of the Insured
toward Third Party shall continue on the legal heirs of the deceased.
Sec.157 (i) When ownership of vehicle is transferred in R.C., Policy of insurance is
deemed to have been transferred to the new owner of vehicle from the date
of transfer of ownership.
(ii) A person to whom the ownership of vehicle is transferred shall make an
application to the Insurer within 14 days of such transfer for Name Transfer
in the policy.
Sec.159 Duty of Police Officer to submit Accident Information Report to the Tribunal
and any other Agency concerned, within 3 months of accident.
Sec.160 Duty of Police Officer/RTO to furnish particulars of vehicle, persons injured,
owner of vehicle etc. to claimant and insurer.
Sec.161 Hit and Run case – Death Rs.2,00,000/- Grievious Hurt Rs.50,000/-
Sec.163 Refund of Compensation paid under Sec.161 if compensation is received
under any other section.
Sec.164 Compensation for Death and Grievious injury
Sec. 164 (1) Death Rs.5 lakhs ; Grievious Injury – Rs.2.5 lakhs
Sec. 164 (2) No need to prove negligence if claimed under Sec.164 (1)
Sec. 164 (3) If compensation is received under any other section or any other Law, the
same shall be adjusted against the compensation payable under Sec.164
Sec 164B Motor Vehicle Accident Fund – to treat accident victims and pay
compensation under Sec.161 (Hit and Run cases)
Sec.165 Constitution of Claims Tribunals
Sec.166 Application for compensation, place where application can be filed, time limit
for applying for compensation (within 6 months from date of accident)
Sec.167 Option to claim under W.C. Act or MV ACT (in respect of workmen) and not
under both.
Sec.168 1) Award of compensation by tribunal
2) Copy of Award to be provided by Tribunal to all parties within 15 days of
Award
3) Compensation should be deposited within 30 days of announcing of Award
Sec.169 Powers of Claims Tribunal to conduct proceedings – similar to Civil Court
Sec.170 Rights of Insurer to contest the claims on all grounds available to the insured
(in addition to Insurer’s defence under Sec.150 (2) in case of
a) collusion between claimant and insured
b) in case insured has become ex-parte
Sec.171 Award of interest on compensation from the date of petition
Sec.172 Award of Special Costs (similar to penalty) in case of false claim or
misrepresentation by any party, not exceeding Rs.1000/-
Sec.173  Appeals – Any aggrieved party can prefer Appeal in High Court within 90
days of the Award.
 Respondent to deposit Rs.25,000/- or 50% of the Award, whichever is
less, before filing Appeal.
 Appeal cannot be filed if Award amount is less than Rs.1 lakh
Sec.174 Amount due from any person towards an Award shall be recovered by the
Tribunal through the Collector similar to arrears of Land Revenue.

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