Page 51 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

persons hiring it. It cannot pick up other passengers en
route. Whereas the stage carriage runs between two
points irrespective of any prior contract, and it can
pick up passengers en route who pay the fare for the
distance they propose to travel.

Q.4. What is the necessity of third party insurance?
Ans : Who are exempted from it?
Section 146 of the Motor Vehicles Act, 1988 provides
that no person shall use ( except as a passenger), or
allow any other person to use, a motor vehicle in a public
place, unless the vehicle is covered by a policy of
insurance complying with the requirement of the Act.

Section 146 seeks to protect members of public using
public places from the risks of accidents caused by the
user of motor vehicles. The motor vehicle can be likened
to a wild animal; whosoever keeps it, does so at his
risk. A Court can only pass an award or decree.

But it cannot ensure that such an award or decree results
in actual payment, because the person held liable may
be insolvent or may not have sufficient resources to
meet the award. To overcome the situation, the law has
made it obligatory that no motor vehicle shall be used
unless third party insurance is in place.

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