Page 9 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

commercial interest of the railway companies. Thus the
Act do not contain any provision relating to Compulsory
Third Party Insurance in the line of Road Traffic Act,
1930 and Road Traffic Act, 1934.

Growth : Though an attempt was made to introduce a
provision relating to compulsory third party insurance in
the year 1943, but the same was deferred due to the
outbreak of 2nd world war and finally, the provision
relating to third party insurance was being included in
the Motor Vehicles Act, 1939 with effect from 01/07/
1946. As a corollary to that Motor Vehicle (Third Party
Insurance) Rules, 1946 was also enacted for its
effective implementation.

The Motor Vehicle Act, 1939 save for chapter VIII
relating to the insurance of motor vehicles against third
party risk, has been in force since July 1, 1939, in what
were known as part A & part C states, and since April
1, 1951 in part B states. Chapter VIII came into force
on July 1, 1976.

Development: To keep pace with the changing societal
need, the law relating to Motor Third Party Insurance
had undergone several changes from time to time.
Notable amongst them are as under:
1. Insertion of Sec 110-A to 110-F in Chapter VIII of

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