Page 7 - Motor Insurance Ebook IC 72
P. 7
Guide for Motor Insurance
Parties (Right Against Insurer) Act, 1930 was enacted
to empower third party to claim compensation from the
insurance company directly.
Development : Over the period, it was found that the
insurance companies could manage to avoid their liability
towards third party, by stipulating various terms and
conditions in the policy of insurance.
To overcome the same and to ensure that the vehicular
victims right to receive compensation from the insurance
company is not defeated by referring to such terms and
conditions of the policy Road Traffic Act, 1934 was
enacted, which restricted and limited insurer's right to
defend the claim as provided in the said Act. All these
laws are consolidated in Road Traffic Act, 1960.
Road Traffic Act was being altered, amended, repealed,
replaced and substituted from time to time to keep pace
with the changes in the society. The latest in the series
is Road Traffic Act, 1988.
2. Discuss the origin growth and development of
Motor Insurance in India.
Ans. India, being a British Colony at that time, inherited both
the principle and practice relating to motor insurance
business as well as law relating to motor third party
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