Page 61 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

person dies after incurring third party liability, then the
cause of action survives against the insured's estate, or
legal heirs or against the insurer. If this provision was
not made, then the third party's right of action against
the negligent owner of the vehicle would die with the
death of the owner.

This explains why the Third party section of a Motor
policy always contains a paragraph stating that the
company will indemnify the insured's legal
representative in terms of the policy in the event of the
Insured's death.

Q11. What are the provisions under M.V.Act regarding
Ans. Transfer of Certificate of Insurance?
Section 157 of the Motors Vehicle Act, 1988 provides
that where a person in whose favor a Certificate of
Insurance has been issued, transfers to another person
the ownership of the motor vehicle in respect of which
the insurance was taken, then the Certificate of
Insurance and the relative Policy shall be automatically
deemed to be transferred in favor of the new owner
from the date of transfer of ownership of the vehicle.

Such deemed transfer includes transfer of rights and
liabilities of the said Certificate of Insurance and Policy
of Insurance.

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