Page 24 - Insurance Times June 2019

place or in any other place unless the vehicle is registered The question that arises here whether the prescribed form
in accordance with this Chapter and the certificate of for registration needs to be accompanied by an insurance
registration of the vehicle has not been suspended or policy. The answer is yes as Section 146 MV Act 1988 makes
cancelled and the vehicle carries a registration mark that mandatory. Section 146(1) stipulates that "no person
displayed in the prescribed manner: Provided that nothing shall use, except as a passenger, or cause or allow any other
in this section shall apply to a motor vehicle in possession person to use, a motor vehicle in a public place, unless there
of a dealer subject to such conditions as may be prescribed is in force in relation to the use of the vehicle by that person
by the Central Government". or that other person, as the case may be, a policy of
insurance complying with the requirements of this Chapter".
It is very clear from Section 39, that it forbids the driving
of a motor vehicle in any public place or in any other place The Certificate of Insurance issued as per the provision of
without proper registration as laid down in this chapter. Section 147 (3) of MV Act, 1988, states that "a policy shall
However, this particular rule is not applicable to dealers in be of no effect for the purposes of this Chapter unless and
possession of motor vehicles once, the state government until there is issued by the insurer in favour of the person
concern has prescribed rules for the same. by whom the policy is effected a certificate of insurance in
the prescribed form and containing the prescribed
Section 40 further prescribes that a motor vehicle should particulars of any condition subject to which the policy is
be registered by the registering authority in whose issued and of any other prescribed matters; and different
jurisdiction the owner of the motor vehicle resides or where forms, particulars and matters may be prescribed in
the motor vehicle is normally kept. different cases".

An insurer is often faced with a problem whether he can A close perusal of Section 47 Central Motor
issue a certificate of insurance /policy without a certificate Vehicle Rules, 1989 reveals how an application for
of registration? Can he pay a claim that often arises when registration of motor vehicles is to be made
a brand new car just purchased from a show room meets
According to Sec 47(1), an application for registration of a
with an accident without a certificate of registration?
motor vehicle to be made only in the Form 20 to the
registering authority concern within a period of seven days
A close look of Section 41(1) of MV Act, 1988 which deals
from the date of taking delivery of such vehicle. The seven-
with how an application of registration is to be made. It
day deadline shall not include the journey period. The
clearly states that "an application by or on behalf of the
documents needed as per section 47(1) CMV Rules 1989 are
owner of a motor vehicle for registration shall be in such
(a) sale certificate in Form 21;
form and shall be accompanied by such documents,
(b) valid insurance certificate;
particulars and information and shall be made within such
(c) copy of the proceedings of the State Transport
period as may be prescribed by the Central Government."
Authority or Transport Commissioner or such other
authorities as may be prescribed by the State
Government for the purpose of approval of the design
in the case of a trailer or a semi-trailer;
(d) original sale certificate from the concerned authorities
in Form 21 in the case of ex-army vehicles;
(e) proof of address by way of any one of the documents
referred to in rule 4;
(f) temporary registration, if any;
(g) road-worthiness certificate in Form 22 from the
manufacturers, Form 22-A from the body builders];
(h) custom's clearance certificate in the case of imported
vehicles along with the licence and bond, if any
It is evident that a policy of insurance is issued
prior to the issuance of Certificate of Registration.

24 The Insurance Times, June 2019