Page 53 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

established and maintained by that authority for meeting
any liability arising out of the use of any vehicle. The
fund has to be established in accordance with the Rules
framed under the Act.

Q5. What are the requirements of a policy of insurance
issued for a motor vehicle under M.V. Act?
Mention the limits of liabilities required to be
compulsorily covered.

Ans. Section 147 of the Motor Vehicles Act, 1988 provides
for the 'requirements of policies and limits of liability' as
under;
i) Against any liability which may be incurred by the
insured in respect of death of or bodily injury to
any person, including owner of the goods or his
authorized representative carried in the carriage,
or
ii) Against death or bodily injury to any passenger of a
public service vehicle, caused by or arising out of
the use of the vehicle in a public place.

The policy, further covers the liability arising under the
Workmen's Compensation Act, 1923 in respect of death
or bodily injury to any such employee,
(a) Engaged in driving the vehicle, or
(b) Engaged as conductor or ticket examiner in a public

service vehicle, or

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