Page 40 - Motor Insurance Ebook IC 72

The Insurance Times

Q1. Explain the important provisions of the Motor
Vehicle Act, 1988, with specific reference to
provisions relating to motor third party insurance.

Ans: The Motor Vehicle Act, 1988 (Act No: 59 of 1988) is
the outcome of all the recommendations proposed by
various committees. It has replaced the earlier 1939
Act and it became effective from 1st July 1989. Some
of the important provisions of the Act provide for the
following matters:
1. Rationalization of certain definitions with additions
of certain new definitions of new types of vehicles.

2. Stricter procedures for grant of driving licenses and
period of their validity.

3. Lying down of standards for the components and
parts of motor vehicles.

4. Standards for anti-pollution control devices.

5. Provision for issuing fitness certificates of vehicles
also by the authorized testing stations.

6. Enabling provisions for updating the system of
registration marks.

7. Liberalized schemes for grant of All India Tourist
permits as also national permits for goods carriages.

8. Administration of Solarium Fund by General
Insurance Corporation.

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