Page 112 - Motor Insurance Ebook IC 72

The Insurance Times

Vehicles Act provides that the judgment obtained
against insurers shall not be defeated by the
incorporation of exclusion clauses in the policy other
than those authorized by Section 149 of the Act.

All motor policies therefore contain a clause called
"Avoidance of certain terms and right of
recovery" reading as under:

"Nothing in this policy or any endorsement hereon shall
affect the right of any person to recover an amount
under or by virtue of the provision of the Motor Vehicles
Act.

But the Insured shall repay to the Company all sums
paid by the Company, which the Company would not
have been liable to pay but for the said provisions
shall for all purpose be deemed to have been
abandoned and shall not thereafter be recoverable
under the policy".

Thus this clause in its effect provides that any provision
in the policy which has the effect of denying payment
of claim to any person, who is entitled to receive it by
virtue of provisions of the Motor Vehicles Act, is of no
effect. Thus, the interests of third parties are
safeguarded.

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