Section 152. Duty to give information as to insurance.

What is the duty imposed under Section 152 of the Motor Vehicles Act?

Section 152 imposes a duty on any person against whom a claim is made regarding liability covered under clause (b) of sub-section (1) of section 147 to provide information about their insurance status upon request. This includes stating whether they were insured for that liability under a policy issued under the provisions of this Chapter, or would have been insured if the insurer had not avoided or cancelled the policy. Additionally, they must provide particulars of the insurance policy as specified in the certificate of insurance.

Who else is obligated to provide information under this section?

In specific circumstances like insolvency, arrangements with creditors, winding-up proceedings of a company, or administration of the estate of a deceased person, certain parties are required to provide information. These include the insolvent debtor, personal representative of the deceased debtor, official assignee, receiver in insolvency, trustee, liquidator, or any person in possession of relevant property. They must furnish requested information to any person claiming liability covered under this Chapter to ascertain if rights have been transferred under Section 151 and to enforce such rights.

What happens if the information provided suggests that rights against a specific insurer may have been transferred under Section 151?

If the information provided pursuant to Section 152(2) or otherwise gives reasonable grounds to believe that rights against a particular insurer have been transferred under Section 151, that insurer is then obligated to provide the same level of information as required under Section 152(2) to the person making the claim.

Does the duty to provide information under Section 152 include allowing access to insurance documents?

Yes, the duty to provide information extends to allowing inspection of all relevant documents such as contracts of insurance, premium receipts, and other pertinent documents that are in the possession or control of the obligated person. Copies of these documents must also be allowed to be taken.

Explanation:

Section 152 of the Motor Vehicles Act ensures transparency and facilitates the enforcement of rights related to insurance coverage in cases of liability claims. It mandates the provision of necessary information and access to documents to ascertain insurance coverage and enforce corresponding rights under the law.

What is the requirement for a settlement to be valid under Section 153 of the Motor Vehicles Act?

Under Section 153(1), any settlement made by an insurer regarding a claim that might be made by a third party for liability covered under clause (b) of sub-section (1) of section 147 shall only be valid if the third party is also a party to the settlement.

What role does the Claims Tribunal play in settlements under this section?

According to Section 153(2), the Claims Tribunal must ensure that any settlement between an insurer and a third party is bona fide (genuine) and not made under undue influence. The compensation provided in such settlements must also comply with the payment schedule mentioned in sub-section (1) of section 164 of the Act.

How does Section 153(3) protect the rights of third parties in cases of insolvency or winding-up?

Section 153(3) specifies that if a person insured under a policy issued under this Chapter becomes insolvent, or if the insured person is a company and a winding-up order has been made or a voluntary winding-up resolution passed, any agreement between the insurer and the insured person made after the liability to a third party has been incurred and after the commencement of insolvency or winding-up, as well as any waiver, assignment, disposition, or payment made to the insured person, shall not be effective to defeat the rights transferred to the third party under this Chapter. The rights of the third party remain unaffected by such agreements or actions and are preserved as if these agreements or actions had not occurred.

Explanation:

Section 153 ensures that settlements between insurers and third parties are conducted fairly and with the involvement of the third party itself. It also safeguards the rights of third parties in cases where the insured person becomes insolvent or a company is winding up, preventing any agreements or payments that could potentially undermine the rights transferred to the third party under the Motor Vehicles Act.

What does Section 154(1) of the Motor Vehicles Act state regarding liabilities to third parties under insurance policies?

Section 154(1) clarifies that for the purposes of Sections 151, 152, and 153 of the Motor Vehicles Act, when referring to "liabilities to third parties" in relation to a person insured under any policy of insurance, it does not include liabilities of that person in the capacity of an insurer under some other policy of insurance.

Under what circumstances do the provisions of Sections 151, 152, and 153 not apply according to Section 154(2)?

Section 154(2) specifies that the provisions of Sections 151, 152, and 153 shall not apply in cases where a company is voluntarily wound-up solely for the purpose of reconstruction or amalgamation with another company.

Explanation:

Section 154 of the Motor Vehicles Act ensures clarity regarding liabilities to third parties under insurance policies. It excludes liabilities arising from the capacity of an insured person as an insurer under another policy of insurance from the scope of Sections 151, 152, and 153. Additionally, it exempts companies undergoing voluntary winding-up for the sole purpose of reconstruction or amalgamation from the application of these sections, thereby providing specific exceptions under certain corporate actions.

What is the main provision of Section 155 of the Motor Vehicles Act?

Section 155 stipulates that despite the provisions of Section 306 of the Indian Succession Act, 1925, the death of a person to whom a certificate of insurance has been issued will not prevent the survival of any cause of action arising from an event that occurred before their death. This cause of action can be pursued against the estate of the deceased person or against the insurer.

Explanation:

Section 155 ensures continuity in legal actions related to insurance claims under the Motor Vehicles Act even after the death of the insured person. It clarifies that the right to claim compensation arising from an event that gave rise to a claim under the Act remains unaffected by the death of the insured person. This provision is crucial for ensuring that victims or claimants can still pursue their legal rights for compensation against the insurer or the estate of the deceased insured person.

What is the effect of a certificate of insurance under Section 156 of the Motor Vehicles Act?

When an insurer issues a certificate of insurance in relation to a contract with the insured person:

• Clause (a): Until the insurer issues the actual policy to the insured, the certificate is considered as equivalent to a policy that fully conforms with the description and particulars stated in the certificate.


• Clause (b): If the insurer later issues a policy to the insured but its terms are less favorable to those making claims against the insurer compared to what was stated in the certificate, the terms stated in the certificate prevail in dealings between the insurer and any third party (except the insured).

Example: If a certificate promises comprehensive coverage, but the policy issued later has restrictions, third-party claimants can rely on the certificate's terms for their claims against the insurer.

What happens when a motor vehicle with a certificate of insurance is transferred to another person?

According to Section 157 of the Motor Vehicles Act:

• 1. Transfer of Ownership: When a person transfers ownership of a motor vehicle along with the policy of insurance and the certificate of insurance to another person, the certificate and policy are deemed transferred to the new owner from the date of transfer.


• 2. Rights and Liabilities: This transfer includes the transfer of rights and liabilities associated with the certificate of insurance and the policy.

What certificates, licences, and permits must be produced when driving a motor vehicle in a public place?

According to Section 158 of the Motor Vehicles Act:

• Certificates: Any person driving a motor vehicle in a public place must, upon request by a police officer authorized by the State Government, produce the following:


• Certificate of Insurance
• Certificate of Registration
• Pollution Under Control Certificate
• Driving Licence
• For transport vehicles: Certificate of Fitness and Permit
• Any exemption certificate related to vehicle use under this Act.


• Accident Reporting: In case of an accident resulting in death or bodily injury, if the driver cannot produce these documents immediately, they or the owner must present them at the police station where the accident report is made.

You can also learn about :

Insurance of Motor Vehicle Against Third Party Risks section 159 to 164

Our other famous blogs are :

Motor Vehicle Act - Offences Penalties and Procedure | Motor Vehicle Act - Miscellaneous | Motor Vehicle Act - Claims Tribunals | Motor Vehicle Act - Control of Traffic