Page 58 - Motor Insurance Ebook IC 72

The Insurance Times

However, the insurer can have wider defence than what
is provided under the Act, in case obtained necessary
permission from the Tribunal under section 170 Motor
Vehicles Act, 1988. Such permission is allowed under
two circumstances i.e.
1. When the insured failed to appear, or
2. When the insurer collided with the claimants.

Once such permission is allowed, then the insurer can
have all the defences to defend the claim. Without such
permission under section 170 Motor Vehicles Act, 1988,
insurer's right to defence was limited to the extend
provided under section 149 (2) Motor Vehicles Act, 1988.

Recently, Supreme Court of India in its order dated 13/
10/2011, in the case of United India vs. Shilla Datta,
among other things, held that, once insurer is impleaded
as a party responded in a claim petition, insurer shall
have all the defences. The net result is that now insurer
can have the right to avail all the defences even without
permission under section 170 Motor Vehicles Act, 1988.

Q8. What is the duty cast upon insured in case of a
third party loss?

Ans: Sec. 151 of the Motor vehicles Act, 1988 requires that
the person, who has incurred a liability to third party

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