Page 56 - Motor Insurance Ebook IC 72

The Insurance Times

The insurer can avoid liability only by raising successfully
any of the defenses specified under section 149(2) of
the Motor Vehicles Act, 1988.

Q7. What are the defences available to insurers to
Ans : defend third party liability?
Right to defence by the insurer against third party
insurance claim was limited to the extent provided under
section 149 (2) Motor Vehicles Act, 1988.

It is mandatory to issue notice to the insurer about the
bringing of the proceedings through the Claims Tribunals
before the commencement of the proceedings. The
insurer who receives the notice is entitled to be made a
party thereto and to defend the action on any of the
following grounds:
a) that there has been breach of a specified condition

of the Policy, being one of the following condition,
viz.:
(i) a condition excluding the use of the vehicle:
(a) for hire or reward, where vehicle is on the date

of the contract of insurance a vehicle not
covered by a Permit to ply for hire or reward,
or
(b) for organized racing and speed testing, or
(c) for a purpose not allowed by the permit under
which the vehicle is used, where the vehicle is

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