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| Home > Indian Bare Acts > THE MOTOR VEHICLES ACT, 1939 > CHAPTER VIII INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS |
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| THE MOTOR VEHICLES ACT, 1939 |
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Title : THE MOTOR VEHICLES ACT, 1939
Year : 1939
Act : CHAPTER VIII
INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS
93.
Definitions.
93.Definitions. In this Chapter-
1[(a) "authorised insurer" means an insurer in whose case the
requirements of the Insurance Act, 1938,(4 of 1938.) are
complied with ;]
(b)certificate of insurance " means a certificate issued by
an authorised insurer in pursuance of sub-section (4) of
section 95; and includes 3[a cover note complying with such
requirements as may be prescribed, and] where more than one
certificate has been issued in connection with a policy, or
where a copy of a certificate has been issued, all those
certificates or that copy, as the case may be ;
4["(ba) "liability" wherever used in relation to the death of
or bodily injury to any person includes liability in respect
thereof under section 92A;]"
2[(bb) "property" includes roads, bridges, culverts,
causeways, trees, posts and milestones ,]
3[(C) "reciprocating country" means any such country as may
on the basis of reciprocity be notified by the Central
Government in the Official Gazette to be a reciprocating
country for the purposes of this Chapter;]
2[(d) "third party" includes the Government.]
94.
Necessity for insurance, against third party risk.
94.Necessity for insurance, against third party risk. (1) No
person shall use except as a passenger or cause or allow any other
person to use a motor vehicle in a public place, unless there is in
force in relation to the use of the vehicle by that person or that
other pereson, as the case may be, a policy of insurance complying
with the requirements of this Chapter.
Explanation.-A person driving a motor vehicle merely as a paid
employee, while there is in force in relation to the use of the
vehicle no such policy as is required by this sub-section, shall not
be deemed to act in contravention of the sub-section unless he knows
or has reason to believe that, there is no such policy in force.
----------------------------------------------------------------------
*Chapter VIII shall cease to have effect in the territories
transferred to the State of Kerala under Act 17 of 1956, (w.e.f. 15-7-
1960): vide Act 5 of 1960.
1 Subs. by Act 100 of 1956, s. 72 for the original cl. (w.e.f. 16-2-
1957).
2 Ins. by Act 56 of 1969, s. 52 (w.e.f. 2-3-1970).
3 Ins. by Act 100 of 1956, s. 72 (w.e.f. 16-2-1957).
4 Ins. by Act 47 of 1982, S. 12 (w.e.f. 1.10.1982).
----------------------------------------------------------------------
109.
1[(2) Sub-section (1) shall not apply to any vehicle owned by the
Central Government or a State Government and used for Government
purposes unconnected with any commercials enterprise.
(3) The appropriate Government may, by order, exempt FROM the
operation of sub-section (1) any vehicle owned by any of the following
authorities. namely:-
(a) the Central Government or a State Government, if the
vehicle is used for Government purposes connected with any
commercial enterprise;
(b) any local authority;
(c)any State transport undertaking within the meaning of
section 68A
Provided that no such ORDER shall be made in relation to any sue
authority unless a fund has been established and is maintained by that
authority in accordance with the rules made in that behalf under this
Act for meeting any liability arising out of the use of any vehicle of
that authority which that authority or any person in its employment
may incur to third parties.
2 [Explanation.-For the purposes of this sub-section, appropriate
Government means the Central Government or the State Government, as
the case may be, and-
(i) in relation to any corporation or company owned by the
Central Government or any State Government, means the Central
Government or that State Government;
(ii) in relation to any corporation or company owned by the
Central Government and one or more State Governments, means
the Central Government;
(iii) in relation to any other State Transport Undertaking or
any local authority, means that Government which has control
over that Undertaking or authority.]
95.
Requirements of policies and limits of liability.
95.Requirements of policies and limits of liability. (1) In
ORDER to comply with the requirements of this Chapter, a policy of
insurance must be a policy which-
(a) is issued by a person who is an authorised insurer 3[or
by a co-operative society allowed under section 108 to
transact the business of an insurer], and
---------------------------------------------------------------------
1 Subs. by Act 100 of 1956, s. 73. for sub-section (2) (w.e.f. 16-2-
1957)
2 Subs. by Act 56 of 1969, s. 53, for Explanation (w.e.f. 2-3-
1970).
3 Ins. by Act 100 of 1956 s. 74 (w.e.f. 16-2-1957).
----------------------------------------------------------------------
110.
1[(b) insures the person or classes of persons specified in the
policy to the extent specified in sub-section (2)-
(i)against any liability which may be incurred by him in
respect of the death of or bodily injury to any person or
damage to any property of a third party caused by or arising
out of the use of the vehicle in a public place ;
(ii)against the death of or bodily injury to any passenger of
a public service vehicle caused by or, arising out of the use
of the vehicle in a public place
Provided that a policy shall not 2* * * be required-
(i) to cover liability in respect of the death, arising out
of and in the course of his employment, of the employee of a
person insured by the policy or in respect of bodily injury
sustained by such an employee arising out of and in the
course of his employment 3[other than a liability arising
under the Workmens Compensation Act, 1923, in 8 respect of
the death of, or bodily injury to, any such employee-
(a) engaged in driving the vehicle, or
(b)if it is a public service vehicle, engaged as a conductor
of the vehicle or in examining tickets on the vehicle, or
(c) if it is a goods vehicle, being carried in the
vehicle], or
(ii) except where the vehicle is a vehicle in which
passengers are carried for hire or reward or by reason of or
in pursuance of a contract of employment, to cover liability
in respect of the death of or bodily injury to persons being
carried in or upon or entering or mounting or alighting front
the vehicle at the time of the occurrence of the event out
of which a claim arises, or
(iii) to cover any contractual liability.
4[Explanation.-For the removal of doubts, it is hereby
declared that the death of or bodily injury to any person or
damage, to any
-------------------------------------------------------------------
1 Subs. by Act 56 of1969, s. 54, for cl. (b) (w.e.f. 2-3-1970).
2 The words "exceptas my be otherwise provided under sub-section (3)"
omitted by Act 100 of 1956, s. 74 (w.e.f. 16-2-1957).
3 Ins. by s. 74, ibid. (w.e.f. 16-2-1957).
4 Ins. by Act 56 of 1969, (w,e.f, 2-3-1970).
--------------------------------------------------------------------
111.
property of a third party shall be deemed to have been caused by or to
have arisen out of, the use of a vehicle in a public place notwith-
standing that the person who is dead or injured or the property which
is damaged was not in a public place at the time of the accident, if
the act or omission which led to the accident occurred in a public
place.]
(2) Subject to the proviso to sub-section (1), a policy of
insurance shall cover any liability incurred in respect of any one
accident up to the following limits, namely:-
1[(a) where the vehicle is a goods vehicle, a LIMIT of 4[one
lakh and fifty thousand rupees] in all, including the
liabilities, if any,arising under the Workmens Compensation
Act, 1923, (8 of 1923.) in respect of the death of, or bodily
injury to, employees, (other than the driver), not exceeding
six in number, being carried in the vehicle ;]
3[(b) where the vehicle is a vehicle in which passengers are
carried for hire or reward or by reason of or in pursuance of
a contract of employment,-
(i)in respect of persons other than passengers carried for
hire or reward, a LIMIT of fifty thousand rupees in all
4["(ii) in respect of passengers, a LIMIT of fifteen
thousand rupees for each individual passenger;"]
---------------------------------------------------------------------
1 Subs. by Act 100 of 1956, s. 74, for the former cl. (w.e.f. 16-2-
1957).
2 Subs. by Act 56 of 1969, s. 54 for "twenty" (w.e.f. 2-3-1970).
3 Subs. by s. 54, ibid., for clause (b) and (c) (w.e.f. 2-3-1970).
4 Subs. by Act 47 of 1982, S. 13 (w.e.f. 1.10.1982).
----------------------------------------------------------------------
112.
(c)save as provided in clause (d), where the vehicle is a
vehicle of any other class, the amount of liability incurred;
(d)irrespective of the class of the vehicle, a LIMIT of
rupees 5[six thousand]in all in respect of damage to any pro-
perty of a third party.]
1* * * * * *
(4) A policy shall be of no effect for the purposes of this
Chapter unless and until there is issued by the insurer in favour of
the person by whom the policy is effected a certificate of insurance
2*** in the prescribed form a containing the prescribed particulars of
any, conditions subject which the policy is issued and of any other
prescribed matters different forms, particulars and matters may be
prescribed in different cases.
3[ ( (4A) Where a cover note issued by the insurer under the
provisions of this Chapter or the rules made thereunder is not
followed by a policy of insurance within the prescribed time, the
insurer shall, within seven days of the expiry of the period of the
validity of the cover note, notify he fact to the registering
authority in whose records the vehicle to which the cover note relates
has been registered or to such other authority as the State Government
may prescribe.]
(5) Notwithstanding anything elsewhere contained in any law, a
person issuing a policy of insurance under this section shall be
liable to indemnify the person or classes of person, specified in the
policy in respect of any liability which the policy purports to cover
in the case of that person or those classes of person.
4[95A.Validity of policies of insurance issued in reciprocating
countries. Where, in pursuance of an arrangement between India and any
reciprocating country, any motor vehicle registered in the
reciprocating country operates on any route or within any area common
to the two Countries and there is in force in relation to the use of
the vehicle in the reciprocating country, a policy of insurance
complying with the requirements of the law of insurance in force in
that country, then, notwithstanding anything contained in section 95.
----------------------------------------------------------------------
1 Sub-section (3) omitted by Act 100 of 1956, s. 74 (w.e.f. 16-2-
1957).
2 The words "or a cover note" omitted by s. 74, ibid. (w.e.f. 16-2-
1957).
3 Ins. by s. 74, ibid. (w.e.f. 16-2-1957).
4 Ins by. s. 75, ibid. (w.e.f. 16-2-1957).
5 Subs. by Act 47 of 1982, S. 13 (w.e.f. 1.10.1982).
-----------------------------------------------------------------------
113.
but subject to any rules which may be made under section 111, such
policy of insurance shall be effective throughout the route or area in
respect of which the arrangement has been made, as if the policy of
insurance had complied with the requirements of this Chapter.
1[95AA.Security to be deposited by insurers. (1) In addition to
the deposits required to be made under section 7 of the Insurance
Act, 1938, (4 of 1938.) every insurer who is competent to issue a
policy of insurance in accordance with this Chapter, shall deposit and
keep deposited with the Reserve Bank of India or the State Bank of
India, a sum of rupees thirty thousand as security for the due
discharge of any liability covered by a policy of insurance issued in
accordance with the provisions of this Chapter.
(2) Any sum deposited under sub-section (1) shall be deemed to
be part of the assets of the insurer but shall not be susceptible of
any assignment or charge nor shall it be liable to any attachment in
execution of any decree except for meeting the claims arising in
respect of a policy of insurance issued after the complying with the
requirements of this Chapter.
(3) Where, on an application made to it in this behalf, any
Court or Claims Tribunal, which has made an award for compensation
under this Act, is satisfied-
(i) that the applicant has exhausted all other remedies
open to him to recover his dues FROM the insurer, or
(ii) that the award has been made after the insurer has gone
INTO liquidation,
it may direct the payment of such, compensation FROM out of the sum
deposited under sub-section (1):
Provided that in the case of the insolvency of the insurer-
(a)such payment shall not be made until all claims under this
Act against the insurer have been settled ; and
(b)payment so made shall be proportionate to the amount of
compensation allowed in each case.]
96.
Duty of insurers to satisfy.
96. Duty of insurers to satisfy . (1) If, after a
certificate of insurance 2 * * * has been issued under sub-section (4)
of section 95 in favour of the person by whom
----------------------------------------------------------------------
1 Ins. by Act 56 of 1969, s. 55 (w.e.f. 2-3-1970).
2 The words "or a cover note" omitted by Act 100 of 1956, s.76. (w.e.f.16-2-1957)
----------------------------------------------------------------------
114.
judgments against persons insured in respect of third party risks. a
policy has been effected, judgment in respect of any such liability as
is required to be covered by a policy under clause (b) of sub-section
(1) of section 95 (being a liability covered by the terms of the
policy) is obtained against any person insured by the policy, then,
notwithstanding that the insurer may be entitled to avoid or cancel or
may have avoided or cancelled the policy, the insurer shall, subject
to the provisions of this section, pay to the person entitled to the
benefit of the decree any sum not exceeding the sum assured payable
thereunder, as if he were the judgment debtor, in respect of the
liability, together with any amount payable in respect of costs and
any sum payable in respect of interest on that sum by virtue of any
enactment relating to interest on judgments.
(2) No sum shall be payable by an insurer under sub-section (1)
in respect of any judgment unless before or after the commencement of
the proceedings in which the judgment is given the insurer had notice
through the Court of the bringing of the proceedings, or in respect of
any judgment so long as execution is stayed thereon pending an appeal;
and an insurer to whom notice of the bringing of any such proceedings
is so given shall be entitled to be made a party thereto and to defend
the action on any of the following grounds, namely:--
(a)that the policy was cancelled by mutual consent or by
virtue of any provision contained therein before the accident
giving rise to the liability, and that either the certificate
of insurance was surrendered to the insurer or that the
person to whom the certificate was issued has made an
affidavit stating that the certificate has been lost or
destroyed, or that either before or not later than fourteen
days after the happening of the accident the insurer has
commenced proceedings for cancellation of the certificate
after compliance with the provisions of section 105 : or
(b) that there has been a breach of a specified condition
of the policy, being one of the following conditions,
namely:-
(i) a condition excluding the use of the vehicle-
(a) for hire or reward where the vehicle is on the date of
the contract of insurance a vehicle not covered by a permit
to ply for hire or reward, or
(b) for organised racing and speed testing, or
114A
(c) for a purpose not allowed by the permit under which the
vehicle is used, where the vehicle is 1 [a transport
vehicle], or
(d) without side-car being attached, where the vehicle is a
motor cycle ; or
(ii) a condition excluding driving by a named person or
persons or by any person who is not duly licensed, or by any
person who has been disqualified for holding or obtaining a
driving licence during the period of disqualification : or
(iii) a condition excluding liability for injury caused or
contributed to by conditions of war, civil war, riot or civil
commotion; or
(c)that the policy is void on the ground that it was obtained
by the non-disclosure of a material fact or by a
representation of fact which was false in some material
particular.
2[(2A) Where any such judgment as is referred to in sub-section
(1) is obtained FROM a Court 3* * * in a reciprocating country and in
the case of a foreign judgment is, by virtue of the provisions of
section 13 of the Code of Civil Procedure, 1908, (5 of 1908.)
conclusive as to any matter adjudicated upon by it, the insurer (being
an insurer registered under the Insurance 1 Act, 1938, (4 of 1938.)and
whether or not he is registered under the corresponding law of the
reciprocating country) shall be liable to the,person entitled to the
benefit of the decree in the manner and to the extent specified in
sub-section (1), as if the judgment were given by a, Court in India.
Provided that no sum shall be payable by the insurer in respect
of any such judgment unless, before or after the commencement of the
proceedings in which the judgment is given, the insurer had notice
through the Court Concerned of the bringing of the proceedings and the
insurer to whom notice is so given is entitled under the corresponding
law 3* * * of the reciprocating country, to be made a
----------------------------------------------------------------------
1 Subs. by Act 58 of 1960, s. 3 and Sch. II, for "a public service
vehicle or a goods vehicle".
2 lns. by Act 100 of 1956, s. 76 (w.e.f. 16-2-1957).
3 Omitted by Act 25 of 1968, s.2 and Sch. (w.e.f. 15-8-1968).
-----------------------------------------------------------------------
114B
party to the proceedings and to defend the action on grounds similar
to those specified in sub-section (2).]
(3) Where a certificate of insurance 1*** has been issued under
sub-section (4) of section 95 to the person by whom a policy has been
effected, so much of the policy as purports to restrict the insurance
of the persons insured thereby by reference to any conditions other
than those in clause (b) of sub-section (2) shall, as respects such
liabilities as are required to be covered by a policy under clause (b)
of sub-section (1) of section 95, be of no effect:
Provided that any sum paid by the insurer in or towards the
discharge of any liability of any person which is covered by the
policy by virtue only of this sub-section shall be recoverable by the
insurer FROM that person.
(4) If the amount which an insurer becomes liable under this
section to pay in respect of a liability incurred by a person insured
by a policy exceeds the amount for which the insurer would apart from
the provisions of this section be liable under the policy in respect
of that liability, the insurer shall be entitled to recover the excess
FROM that person.
(5) In this section the expressions "material fact" and
"material particular" mean, respectively, a fact or particular of such
a nature as to influence the judgment of a prudent insurer in
determining whether he will take the risk and, if so,, at what premium
and on what conditions, and the expression "liability covered by the
terms of the policy" means a liability which is covered by the policy
or which would be so covered but for the fact that the insurer is en
titled to avoid or cancel or has avoided or cancelled the policy.
(6) No insurer to whom the notice referred to in sub-section (2)
2 [or sub-section (2A)] has been given shall be entitled to avoid his
liability to any person entitled to the benefit of any such judgment
as is referred to in sub-section (1) 2[or sub-section (2A)] otherwise
than in the manner provided for in sub-section (2) 2[or in the
corresponding law 3*** of the reciprocating country, as the case may
be].
-----------------------------------------------------------------------
1 The words " or cover note" omitted by Act 100 of 1956, s. 76. (w.e.f. 16-2-1957).
2 Ins. by s. 76, ibid. (w,e.f.16-2-1957).
3 Omitted by Act 25 of 1968, s. 2 and Sch. (w.e.f. 15-8-1968).
------------------------------------------------------------------------
114c
97.
Rights of third parties against insurers on insolvency of the insured.
97.Rights of third parties against insurers on insolvency of the
insured. (1) Where under any contract of insurance effected in
accordance with the provisions of this Chapter a person is insured
against liabilities which he may incur to third parties then-
(a)in the event of the person becoming insolvent or making a
composition or arrangement with his creditors, or
(b)where the insured person is a company, in the event of a
winding up ORDER being made or a resolution for a voluntary
winding up being passed with respect to the company or of a
receiver or manager of the companys_ business or undertaking
being duly appointed, or of possession being taken by or on
behalf of the holders of any debentures secured by a floating
charge of any property comprised in or subject to the charge,
if, either before or after that event, any such liability is
incurred by the insured person, his rights against the insurer under
the contract in respect of the liability shall. notwithstanding
anything to the contrary in any provision of law, be transferred to
and vest in the third party to whom the liability was so incurred.
(2) Where an ORDER for the administration of the estate of a
deceased debtor is made according to the law of insolvency, then, if
any debt provable in insolvency is owing by the deceased in respect of
a liability to a third party against which he was insured under a
contract of insurance in accordance with the provisions of this
Chapter, the deceased debtors rights against the insurer in respect
of that liability shall, notwithstanding anything to the contrary in
any provision of law, be transferred to and vest in the person to whom
the debt is owing.
(3) Any condition in a policy issued for the purposes of this
Chapter purporting either directly or indirectly to avoid the policy
or to alter the rights of the parties thereunder upon the happening to
the insured person of any of the events specified in clause (a) or
clause (b) of sub-section (1) or upon the making of an ORDER for the
administration of the estate of a deceased debtor according to the law
of insolvency shall be of no effect.
115.
(4) Upon a transfer under sub-section (1) or sub-section (2) the
insurer shall be under the same liability to the third party as he
would have been to the insured person, but-
(a) if the liability of the insurer to the insured person
exceeds the liability of the insured person to the third
party, nothing in this Chapter shall affect the rights of the
insured person against the insurer in respect of the excess,
and
(b)if the liability of the insurer to the insured person is
less than the liability of the insured person to the third
party, nothing in this Chapter shall affect the rights of the
third party against the insured person in respect of the
balance.
98.
Duty to give information as to insurance.
98.Duty to give information as to insurance. (1) No person
against whom a claim is made in respect of any liability referred to
in clause (b) of sub-section (1) of section 95 shall on demand by or
on behalf of the person making the claim refuse to state whether or
not he was insured in respect of that liability by any policy issued
under the provisions of this Chapter, or would have been so insured if
the insurer had not avoided or cancelled the policy, nor shall he
refuse, if he was or would have been so insured, to give such
particulars with respect to that policy as were specified in the
certificate of insurance issued in respect thereof.
(2) In the event of any person becoming insolvent or making a
composition or arrangement with his creditors or in the event of an
ORDER being made for the administration of the estate of a deceased
person according to the law of insolvency, or in the event of a
winding up ORDER being made or a resolution for a voluntary winding up
being passed with respect to any company or of a receiver or manager
of the companys business or undertaking being duly appointed or of
possession being taken by or on behalf of the holders of any
debentures secured by a floating charge on any property comprised in
or subject to the charge, it shall be the duty of the insolvent
debtor, personal representative of the deceased debtor or company, as
the case may be, or the official assignee or receiver in insolvency,
trustee, liquidator, receiver or manager, or person in possession of
the property to give at the request of any person claiming that the
insolvent debtor, deceased debtor or company is under such liability
to him as is covered by the provisions of this Chapter, such
information as may reasonably be required by him for the purpose of
ascertaining whether any rights have been transferred to and vested in
him by section 97, and for the purpose of enforcing such rights, if
any ; and any such contract of insurance as purports whether directly
or indirectly to avoid the
116.
contract or to alter the rights of the parties thereunder upon the
giving of such information in the events aforesaid, or otherwise to
prohibit or prevent the giving thereof in the said events, shall be of
no effect.
(3) If, FROM the information given to any person in pursuance of
sub-section (2) or otherwise, he has reasonable ground for supposing
that there have or may have been transferred to him under this Chapter
rights against any particular insurer, that insurer shall be subject
to the same duty as is imposed by the said sub-section on the persons
therein mentioned.
(4) The duty to give the information imposed by this section
shall include a duty to allow all contracts of insurance, receipts for
premiums, and other relevant documents in the possession or power of
the person on whom the duty is so imposed to be inspected and copies
thereof to be taken.
99.
Settlement between insurers and insured persons.
99.Settlement between insurers and insured persons.(1) No
settlement made by an insurer in respect of any clam which might be
made by a third party in respect of any liability of the nature
referred to in clause (b) of sub-section (1) of section 95 shall be
valid unless such third party is a party to the settlement.
(2) Where a person who is insured under a policy issued for the
purposes of this Chapter has become insolvent, or where, if such
insured person is a company, a winding up ORDER has been made or a
resolution for a voluntary winding up has been passed with respect to
the company, no agreement made between the insurer and the insured
person after liability has been incurred to a third party and after
the commencement of the insolvency or winding up, as the case may be,
nor any waiver, assignment or other disposition made by or payment
made to the insured person after the commencement aforesaid shall be
effective to defeat the rights transferred to the third party under
this Chapter, but those rights shall be the same as if no such
agreement, waiver, assignment or disposition or payment has been made.
100.
Saving in respect of sections, 97, 98 and 99.
100.Saving in respect of sections, 97, 98 and 99. (1) For the
purposes of sections 97, 98 and 99, a reference to "liabilities to
third parties" in relation to a person insured under any policy of
insurance shall not include a reference to any liability of that
person in the capacity of insurer under some other policy of
insurance.
(2) The provisions of sections 97, 98 and 99 shall not apply
where a company is wound up voluntarily merely for the purposes of
reconstruction or of an amalgamation with another company.
117.
101. Insolvency of insured persons not to affect liability of insured orclaims by
third parties.
101.Insolvency of insured persons not to affect liability of
insured or claims by third parties. Where a certificate of insurance
has been issued to the person by whom a policy has been effected,
the happening in relation to any person insured by the policy of any
such event as is mentioned in sub-section (1) or sub-section (2) of
section 97 shall, notwithstanding anything in this Chapter, not affect
any liability of that person of the nature referred to in clause (b)
of sub-section (1) of section 95 ; but nothing in this section shall
affect any rights against, the insurer conferred under the provisions
of sections 97, 98 and 99 on the person to whom the liability was
incurred.
102.
Effect of death on certain of insurance.
102.Effect of death on certain of insurance. Notwithstanding
anything contained in section 306 of the Indian Succession Act, 1925,
(39 of 1925.) the death of a person in whose favour a certificate of
insurance 1* * * had been issued, if it occurs after the happening of
an event which has given rise to a claim under the provisions of this
Chapter, shall not be a bar to the survival of any cause of action
arising out of the said event against his estate or against the
insurer.
103.
Effect of certificate of insurance.
103.Effect of certificate of insurance. When an insurer has
issued a certificate of insurance in respect of a contract of
insurance between the insurer and the insured person, then-
(a) if and so long as the policy described in the
certificate has not been issued by the insurer to the
insured, the insurer shall, as between himself and any other
person except the insured, be deemed to have issued to the
insured person a policy of insurance conforming in all
respects with the description and particulars stated in such
certificate ; and
(b) if the insurer has issued to the insured the policy
described in the certificate but the actual terms of the
polity are less favourable to persons claiming under or by
virtue of the policy against the insurer either directly or
through the insured than the particulars of the policy as
stated in the certificate, the policy shall, as between the
insurer and any other person except the insured, be deemed to
be in terms conforming in all respects with, the particulars
stated in the said certificate.
----------------------------------------------------------------------
1 The words "or cover note" omitted by Act 100 of 1956, s. 77 (w.e.f.
16-2-1957).
----------------------------------------------------------------------
118.
1[103A. Transfer of certificate of insurance. (1) Where a person
in whose favour the certificate of insurance has been issued in
accordance with the provisions of this Chapter proposes to transfer to
another person the ownership of the motor vehicle in respect of which
such insurance was taken together with the policy of insurance
relating thereto, he may apply in the prescribed form to the insurer
for the transfer of the certifiCate of insurance and the policy
described in the certificate in favour of the person to whom the
motor vehicle is proposed to be transferred, and if within fifteen
days of the receipt of such application by the insurer, the insurer
has not intimated the insured and such other person his refusal to
transfer the certificate and the policy to the other person the
certificate of insurance and the policy described in the certificate
shall be deemed to have been transferred in favour of the person, to
whom the motor vehicle is transferred with effect FROM the date of its
transfer.
(2) The insurer to Whom any application has been made under sub-
section (1) may refuse to transfer to the other person the certificate
of insurance and the policy described in that certificate if he
considers it necessary so to do, HAVING regard to-
(a) the previous conduct of the other person,-
(i) as a driver of motor vehicles; or
(ii) as a holder of the policy of insurance in respect of
any motor vehicle; or
(b)any conditions which may have been imposed in relation to
any such policy held by the applicant ; or
(c)the rejection of any proposal made by such other person
for the issue of a policy of insurance in respect of any
motor vehicle owned or possessed by him.
(3) Where the insurer ha:; refused to transfer, in favour of the
person to whom the motor vehicle has been transferred, the certificate
of insurance and the policy described in that certificate, he shall
refund to such transferee the amount, if any, which, under the terms
of the policy, he would have had to refund to the insured for the
unexpired term of such policy.]
104.
Duty to surrender certificate on cancellation of policy.
104.Duty to surrender certificate on cancellation of policy. (1)
Whenever the period of cover under a policy of insurance issued under
the provisions of this Chapter is terminated or suspended by any means
before its expiration by effluxion of time, the
----------------------------------------------------------------------
1 Ins. by Act 56 of 1969, s. 56 (w.e.f. 1-10-1970).
----------------------------------------------------------------------
118A
insured person shall within seven days after such termination or
suspension deliver to the insurer by whom the policy was issued the
latest certificate, of insurance given by the insurer in respect of
the said policy, or, if the said certificate has been lost or
destroyed, make an affidavit to that effect.
(2)Whoever fails to surrender a certificate of insurance or to
make an affidavit, as the case may be, in accordance with the
provisions of this section shall be punishable with fine which may
extend to fifteen rupees for every day that the offence continues
subject to a maximum of five hundred rupees.
105.
Duty of insurer to notify registering authority cancellation
orsuspension of the policy.
105.Duty of insurer to notify registering authority cancellation
or suspension of the policy. Whenever a policy of insurance issued
under the provisions of this Chapter is cancelled or suspended by the
insurer who has issued the policy, the insurer shall within seven days
notify such cancellation or suspension to the registering authority in
whose records the registration the vehicle covered by the policy of
insurance is recorded or to such other authority as the State
Government may prescribe.
106.
Production of certificate of insurance.
106.Production of certificate of insurance.(1) Any person driving
a motor vehicle in any public place shall on being so required by a
police officer in uniform 1 [authorised in this behalf by the State
Government] produce the certificate of insurance relating to the use
of the vehicle.
2 * * * * * *
(2) If, where owing to the presence of a motor vehicle, in a
public place an accident occurs involving bodily injury to another
person, the driver of the vehicle does not at the time produce the
certificate of insurance to a police officer, he shall produce the
certificate of insurance at the police station at which he makes the
report required by section 89.
2* * * * * *
3[2A) No person shall be liable to conviction under sub-section
(1) or sub-section (2) by reason only of the failure to produce the
certificate of insurance a if, within seven days FROM the date on
which its production was required under sub-section (1), or as the
case may be, FROM the date of occurrence of the accident, he produces
the certificate at such police station as may have been specified by
him to the police officer who required its production or, as the case
may
----------------------------------------------------------------------
1. Ins.by Act 100 of 1956.s.78 (w.e.f.16-2-1957).
2. Proviso omitted by s.78. ibid. (w.e.f. 16-2-1957).
3. Ins.by s.78. ibid. (w.e.f. 16-2-1957).
----------------------------------------------------------------------
119.
be, to the police officer at the site of the accident or to the
officer in charge of the police station at which he reported the
accident:
Provided that except to such extent and with such modifications
as may be prescribed, the provisions of this sub-section shall not
apply to the driver of a transport vehicle.]
(3) The owner of a motor vehicle shall give such information as
he may be required by or on behalf of a police officer empowered in
this behalf by the State Government to give for the purpose of
determining whether the vehicle was or was not being driven in con-
travention of section 94 and on any occasion when the driver was
required under this section to produce his certificate of insurance.
(4) In this section the expression "produce his certificate of
insurance" means produce for examination the relevant certificate of
insurance or such other evidence as may be prescribed that the vehicle
was not being driven in contravention of section 94. ,
107.
Production of certificates of insurance on application for authorityto use
vehicle.
107.Production of certificates of insurance on application for
authority to use vehicle. A State Government may make rules requiring
the owner of any motor vehicle when applying whether by payment of a
tax Or otherwise for authority to use the vehicle in a public place to
produce such evidence as may be prescribed by those rules to the
effect that either
(a) on the date when the authority to use the vehicle comes
INTO operation there will be in force the necessary policy of
insurance in relation to the use of the vehicle by the
applicant or by other persons on his ORDER or with his
permission, or
(b) the vehicle is a vehicle to which section 94 does not
apply.
108.
Co-operative Insurance.
108.Co-operative Insurance. (1) A State Government may, on the
application of a cooperative society of 1[transport vehicle] owners
registered or deemed to have been registered under the Co-operative
Societies Act, 1912. or under an Act of a State Legislature governing
the registration of Co-operative Societies and subject to the control
of the Registrar of Co-operative Societies of the State, allow the
society to transact the business of an insurer for the purposes of
this Chapter 2* * subject to the following conditions, namely:-
(a)the society shall establish and maintain a fund of not
less than twenty-five thousand rupees for the first fifty
----------------------------------------------------------------------
1. Subs. by Act 100 of 1956, s. 79, for "public service
vehicle" (w.e.f. 16-2-1957).
2. The words "as if the society were an authorised insurer"
omitted by s. 79, ibid. (w.e.f. 16-2-1957).
----------------------------------------------------------------------
120.
vehicles or fractional part thereof and pro rata for every
additional vehicle in the possession of 1 [members of, and
insured with, the society subject to a maximum of one hundred
and fifty thousand rupees] and the said fund shall be lodged
in such custody as the State Government may prescribe and
shall not be available for meeting claims or other expenses
except in the event of the winding up of the society ;
(b) the insurance business of the society shall, except to
the extent permitted under clause (cc), be limited to trans-
port vehicles owned by its members, and its liability shall
be limited as specified in sub-section (2) of section 95;]
(c)the society shall, if required by the State Government,
reinsure against claims above 3[such amount as may be
specified by the State Government];
4[(cc) the society may, if permitted by the State Government
and subject to such conditions and-limitations as may be
imposed by it, Accept re-insurances FROM other societies
allowed to transact the business of an insurer under this
section;
(d) the provisions of this Chapter, in so far as they
relate to the protection of third parties and to the issue
and production of certificates, shall Apply in respect of any
insurance effected by the society;
(e)an independent authority not associated with the society
shall be appointed by the State Government to facilitate and
assist in the-settling of claims against the society;
(f)the society shall operate on an insurance basis, that is
to say,--
(i)it shall levy its premiums in respect of a period not
exceeding twelve months, during which period the insured
shall be held covered in respect of all accidents arising,
subject to the limits of liability specified in 5* * * sub-
section (2) of section 95;
----------------------------------------------------------------------
1. Subs. by Act 100 of 1956, s. 79, for "members of the
society" (w.e.f. 16-2-1957).
2 Subs. by s. 79, ibid., for the former el. (w.e.f. 16-2-1957).
3 Subs. by s. 79, ibid., for "a prescribed amount" (w.e.f. 16-2-
1957).
4 Ins. by s. 79, ibid. (w.e.f. 16-2-1957).
5 The words, brackets and letter "clause (b), of" omitted by S.
79, ibid. (w.e.f. 16-2-1957).
----------------------------------------------------------------------
121.
(ii)it shall charge premiums estimated to be sufficient,
HAVING regard to the risks, to meet the capitalised value of
all claims arising during the period of cover, together with
an adequate charge for expenses attaching to the issue of
policies and to the settlement of claims arising thereunder;
(g)the society shall furnish to the 1[Controller of
Insurance] the returns required to be furnished by insurers
under the provisions of the Insurance Act, 1938, (4 of 1938.)
and the 1[Controller of Insurance] may exercise in respect
thereof any of the powers exercisable by him in respect of
returns made to him under the said Act; 2* * *
3[(h) the society shall, in respect of any business
transacted by it of the nature referred to in clause (i) of
the proviso to subsection (1) of section 95, be deemed to be
an insurer within the meaning of sub-section (1) of section
10 and sub-section (6) of section 13 of the Insurance Act,
1938; (4 of 1938.)
(i)the provisions of the Insurance Act, 1938, (4 of 1938.)
relating to the winding up of insurance companies shall, to
the exclusion of any other law inconsistent therewith and
subject to such modifications as may be prescribed, apply to
the winding up of the society.]
(2) Except as provided in sub-section (1), the Insurance
Act, 1938, (4 of 1938.) shall not apply to any co-operative
society of 4[transport vehicle] owners allowed to transact
the business of an insurer under this section.
109.
Duty to furnish particulars of vehicle involved in accident.
109.Duty to furnish particulars of vehicle involved in accident. A
registering authority or the officer in charge of a police station
shall, if so required by a person who alleges that he is entitled to
claim compensation it respect of an accident arising out of the use of
a motor vehicle, or if so required by an insurer against whom a claim
has been made in respect of any motor vehicle, furnish to that person
or to that insurer, as the case may be, on payment of the prescribed
fee any information at the disposal of the said authority
----------------------------------------------------------------------
1 Subs. by Act 48 of 1952, s. 3 and Sch. II, for "Superintendent
of Insurance".
2 The word "and" omitted by Act 100 of 1956, s. 79 (w.e.f. 16-2-
1957).
3 Subs. by s. 79, ibid.. for, cl. (h) (w.e.f. 16-2-1957).
4 Subs. by Act 58 of 1960, s. 3 and Sch. II, for "public
service vehicle".
-----------------------------------------------------------------------
122.
or the said police officer relating to the identification marks and
other particulars of the vehicle and the name and address of the
person who was using the vehicle at the time of the accident or was
injured by it.
Provided that where the sum standing to the credit of the
Solarium Fund is not adequate for meeting any claim for compensation
under this section, such claim may be kept pending for payment till
such time as the sum necessary for meeting it becomes available in the
Fund.
(6) The provisions of sub-section (1) of section 110A shall
apply for the purpose of making applications for compensation under
this section as they apply for the purpose of making applications for
compensation referred to in that sub-section.
109B.Refund in certain cases of compensation paid under section
109A. (1) The payment of compensation in respect of the death of, or
grievous hurt to, any person under section 109A shall be subject to
the condition that if any compensation (hereafter in this subsection
referred to as the other compensation) or other amount in lieu of or
by way of satisfaction of a claim for compensation is awarded or paid
in respect of such death or grievous hurt under any other provision of
this Act or any other law or otherwise, so much of the other
compensation or other amount aforesaid as is equal to the compensation
paid under section 109A shall be credited to the Solatium Fund by way
of refund.
(2)Before awarding compensation in respect of an accident
involving the death of, or bodily injury to, any person arising out of
the use of a motor vehicle or motor vehicles under any provision of
this Act (other than section 109A) or any other law, the tribunal,
court or other authority awarding such compensation shall verify as to
whether in respect of such death or bodily injury compensation has
already been paid under section 109A or an application for payment of
compensation is pending under that section, and such tribunal, court
or other authority shall,-
(a) if compensation has already been paid under section
109A, direct the person liable to pay the compensation
awarded by it to pay INTO the Solatium Fund so much thereof
as is required to be credited to that Fund in accordance with
the provisions of sub-section (1)
(b) if an application for payment of compensation is pend-
ing under section 109A. forward the particulars as to the
compensation awarded by it to the authority in which the
Solatium Fund vests.
Explanation.-For the purposes of this sub-section, an
application for compensation under section 109A shall be
deemed to be pending-
(i) if such application has been rejected, till the date of
the rejection of the application, and
(ii) in any other case, till the date of payment of compen-
sation in pursuance of the application.
109C.Scheme for the administration of the Solatium Fund. (1) The
Central Government may, by notification in the Official Gazette, make
a scheme, specifying the authority in which the Solatium Fund shall
vest, the manner in which the Fund shall be administered, the form,
manner and the time within which application for compensation FROM the
Fund may be made, the officers or authorities to whom such
applications may be made, the procedure to be followed by such
officers or authorities for considering and passing orders on such
applications, and all other matters connected with, or incidental to,
the administration of the Fund and the payment of compensation
therefrom.
(2) A scheme made under sub-section (1) may provide that-
(a) a contravention of any provision thereof shall be
punishable with imprisonment for such term as may be
specified but in no case exceeding three months, or with fine
which may extend to such amount as may be specified but in
no. case exceeding five hundred rupees or with both;
(b) the powers, functions or duties conferred or imposed on
any officer or authority by such scheme may be delegated,
with the prior approval in writing of the Central Government,
by such officer or authority to any other officer or
authority;
(c) any provision of such scheme may operate with retros-
pective effect FROM a date not earlier than the date of
establishment of the Solatium Fund:
Provided that no such retrospective effect shall be given so
as to prejudicially affect the interests of any person who
may be governed by such provision.
(3) Every scheme made under this section shall be laid, as soon
as may be after it is made before each House of Parliament, while it
is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and
if, before the expiry of the session immediately following the session
or the successive sessions aforesaid. both Houses agree in making any
modification in the scheme or both Houses agree that the scheme should
not be made, the scheme shall thereafter have effect only in such
modified form or be of no effect. as the case may be; so, however,
that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that scheme.]
110.
Claims Tribunals.
1[110.Claims Tribunals. (1) A State Government may, by
notification in the Official Gazette, constitute one or more Motor
Accidents Claims Tribunals (hereinafter referred to as Claims
Tribunals) for such area as may be specified in the notification for
the purpose of adjudicating upon claims for compensation in respect of
accidents involving the death of, or bodily injury to, persons arising
out of the use of 2[motor vehicles, or damages to any property of a
third party so arising, or both:
Provided that where such claim includes a claim for compensation
in respect of damage to property exceeding rupees two thousand, the
claimant may, at his option. refer the claim to a civil court for
adjudication, and where a reference is so made, the Claims Tribunal
shall have no jurisdiction to entertain any question relating to such
claim.]
5[Explanation.-For the removal of doubts, it is hereby declared
that the expression "claims for compensation in respect of
accidents involving the death of, or bodily injury to, persons arising
out of the use of motor vehicles" includes claims for compensation
under section 92A.]
(2) A Claims Tribunal shall consist of such number of members as
the State Government may think fit to appoint and where it consists of
two or more members, one of them shall be appointed as the Chairman
thereof.
(3) A person shall not be qualified for appointment as a member
of a Claims Tribunal unless he-
(a) is, or has been, a Judge of a High Court, or
(b) is, or has been, a District Judge, or
(c) is qualified for appointment as a Judge of the High
Court.
(4)Where two or more Claims Tribunals are constituted for any
area, the State Government may, by general or special order, regulate
the distribution of business among them.
110A. Application for compensation.(1) An application for
compensation arising out of an accident of the nature specified in
sub-section (1) of section 110 may be made-
(a) by the person who has sustained the injury ; or
3["(aa) by the owner of the property; or"]
-------------------------------------------------------------------
1 Subs. by Act 100 of 1956, s. 80, for s, 110 (w.e.f. 16-2-1957).
2 Subs. by Act 56 of 1969, s, 57, for motor vehicles" (w.e.f. 2-
3-1970).
3 Ins. by Act 47 of 1978, S. 32 ( w.e.f 16.1.1979)
4 Ins. by Act 47 of 1982, S. 14 (w.e.f 1.10.1982)
5 Ins. by S. 15, ibid. (w.e.f. 1.10.1982).
---------------------------------------------------------------------
122A
(b) where death has resulted FROM the accident, 1[by all or
any of the legal representatives] of the deceased ; or
(c)by any agent duly authorised by the person injured 2[or
all or any of the legal representatives] of the deceased, as
the case may be:
3[Provided that where all the legal representatives of the
deceased have not joined in any such application for compensation, the
application shall be made on behalf of or for the benefit of all the
legal representatives of the deceased and the legal representatives
who have not so joined, shall be impleaded as respondents to the
application.]
(2) Every application under sub-section (1) shall be made to the
Claims Tribunal HAVING jurisdiction over the area in which the
accident occurred, and shall be in such form and shall contain such
particular as may be prescribed:
4[109A. Special provisions as to compensation in cases of hit and
run motor accidents. (1) For the purposes of this section, section
109B and section 109C,-
(a) "grievous hurt" shall have the same meaning as in the
Indian Penal Code;
(b) "hit and run motor accident" means an accident arising
out of the use of a motor vehicle or motor vehicles the
identity whereof cannot be ascertained in spite of reasonable
efforts for the purpose;
(c) "scheme" means the scheme framed under section 109C;
(d)"Solatium Fund" means the Fund established under sub-
section (2).
(2) The Central Government may, by notification in the Official
Gazette, establish a Fund to be known as the Solatium Fund.
(3) The Solatium Fund shall be utilised for paying, in
accordance with the provisions of this Act and the scheme,
compensation in respect of the death of, or grievous hurt to, persons
resulting FROM hit and run motor accidents.
(4) Notwithstanding anything contained in the General Insurance
Business (Nationalisation) Act, 1972 or any other law for the time
being in force or any instrument HAVING the force of law, the General
Insurance Corporation of India formed under section 9 of the said Act
and the insurance companies for the time being carrying on general
insurance business in India shall make to the Solatium Fund such
contributions as the Central Government may FROM time to time by order
in writing specify, and in addition to such contributions, the said
Fund shall consist of-
(a) such sums as the Central Government may, after due
appropriation made by Parliament by law in this behalf, pro-
vide FROM time to time;
(b) such sums as the State Governments may FROM time to
time contribute; and
(c) such other sums as may be received (whether by way of
refund, gift, donation or in any other manner) for being
credited to the Fund.
(5) Subject to the provisions of this Act and the scheme,
there sh[all be paid as compensation out of the Solatium
Fund,-
(a)in respect of the death of any person resulting FROM a hit
and run motor accident, a fixed sum of five thousand
rupees;
(b) in respect of grievous hurt to any person resulting
FROM a hit and run motor accident, a fixed sum of one
thousand rupees:
6["Provided that where any claim for compensation under section
92A is made in such application, the application shall contain a
separate statement to that effect immediately before
the signature of the applicant."]
(3) No application for 6[such compensation] shall be entertained
unless it is made within 4[six months] of the occurrence of the
accident:
Provided that the Claims Tribunal may entertain the application
after the expiry of the said period of 4[six months] if it is
satisfied that the applicant was prevented by sufficient cause from
making the application in time.
5[110AA.Option regarding claims for compensation in certain
cases. Notwithstanding anything contained in the Workmen
Compensation Act, 1923, (8 of 1923.) where the death of or bodily
injury to any person gives rise to a claim for compensation under this
Act and also under the Workmens Compensation Act, 1923, the person
entitled to compensation 7["may, without prejudice to the provisions
of Chapter VIIA, claim such compensation"] under either of those Act
but not under both.]
---------------------------------------------------------------------
1 Subs. by Act 56 of 1960, s. 58, for "by the legal
representatives" (w.e.f 2-3-1970).
2 Subs. by s. 58, ibid., for "or the legal representatives"
(w,e.f. 2-3-1970),
3 Ins. by s. 58, ibid. (w.e.f. 2-3-1970).
4 Sub by s. 58, ibid., for "sixty days" (w.e.f, 2-3-1970).
5 Ins. by S. 59, ibid. (w.e.f. 2-3-1970),
6 Ins. and subs. by Act 47 of 1982, S. 16 (w.e.f.1.10.1982).
7 Subs. by S. 17, ibid. (w.e.f. 1.10.1982).
---------------------------------------------------------------------
123.
110B.Award of the Claims Tribunal. On receipt of an application
for compensation made under section 110A, the Claims Tribunal shall,
after giving the parties an opportunity of being heard 4["hold an
inquiry INTO the claim or, as the case may be, each of the claims and,
subject to the provisions of section 109B, may make an award"]
determining the amount of compensation which appears to it to be just
and specifying the person or persons to whom compensation shall be
paid; and in making the award the Claims Tribunal, shall specify the
amount which shall be paid by the insurer 1[or owner or driver of the
vehicle involved in the accident or by all or any of them, as the case
may be]:
4["Provided that where such application makes a claim for
compensation under section 92A in respect of the death or permanent
disablement of any person, such claim and any other claim (whether
made in such application or otherwise) for compensation in respect of
such death or permanent disablement shall be disposed of in accordance
with the provisions of Chapter VIIA.]
110C.Procedure and powers of Claims Tribunals. (1) In holding any
inquiry under section 110B, the Claims Tribunal may, subject to any
rules that may be made in this behalf, follow such summary-procedure
as it thinks fit.
(2) The Claims Tribunal shall have all the powers of a Civil
Court for the purpose of taking evidence on oath and of enforcing the
attendance of witnesses and of compelling the discovery and production
of documents and material objects and for such other purposes as may
be prescribed; and the Claims Tribunal shall be deemed to be a Civil
Court for all the purposes of 3["section 195 and Chapter- XXVI of the
Code of Criminal Procedure, 1973"]
2 [(2A) Where in the course of any inquiry, the Claims Tribunal
satisfied that-
(i)there is collusion between the person making the claim and
the person against whom the claim is made, or
(ii) the person against whom the claim is made has failed to
contest the claim,
it may, for reasons to be recorded by it in writing, direct that the
insurer who may be liable in respect of such claim, shall be impleaded
as a party to the proceeding and the insurer so impleaded shall there-
upon have the right to contest the claim on all or any of the grounds
that are available to the person against whom the claim has been
made.]
(3) Subject to any rules that may be made in this behalf, the
Claims Tribunal may, for the purpose of adjudicating upon any claim
for compensation, choose one or more persons possessing special
knowledge of any matter relevant to the inquiry to assist it in
holding the inquiry.
----------------------------------------------------------------------
1. Ins. by Act 56 of 1969, S. 60 (w.e.f. 2-3-1970)
2 Ins. by s.61 ibid. (w.e.f. 2-3-1970)
3 Subs. by Act 47 of 1978, S. 33 (w.e.f. 16.1.1979).
4 Subs. and ins. by Act 47 of 1982, S. 18 (w.e.f. 1.10.1982).
----------------------------------------------------------------------
124.
1[110CC. Award of interest where any claims is allowed. Where
any Court or Claims Tribunal allows a claim for compensation made
under this 2[Act], such Court or Tribunal may direct that in addition
to the amount of compensation simple interest shall also be paid at
such rate and FROM such date not earlier than the date of making the
claim as it may specify in this behalf.
110CCC. Award of compensatory costs in certain cases. (1) Any
Court or Claims Tribunal adjudicating upon any claim for compensation
under this Act, may in any case where it is satisfied for reasons to
be recorded by it in writing that-
(i)the policy of insurance is void on the ground that it was
obtained by representation of fact which was false in any
material particular, or
(ii) any party or insurer has put forward a false or
vexatious claim or defence,
such Court or Tribunal may make an ORDER for the payment, by the party
who is guilty of misrepresentation or by whom such claim or defence
has been put forward, of special costs by way of compensation to the
insurer or, as the case may be, to the party against whom such claim
or defence has, been put forward.
(2) No Court or Claims Tribunal shall pass an ORDER for special
costs under sub-section (1) for any amount exceeding rupees one
thousand.
(3)No person or insurer against whom an ORDER has been made under
this section shall, by reason thereof be exempted FROM any criminal
liability in respect of such misrepresentation, claim or defence as is
referred to in sub-section (1).
(4)Any amount awarded by way of compensation under this section
in respect of any misrepresentation, claim or defence, shall be taken
INTO account in any subsequent suit for damages for compensation in
respect of such misrepresentation, claim or defence.]
110D.Appeals. (1) Subject to the provisions of sub-section (2),
any person aggrieved by an award of a Claims Tribunal may, within
ninety days FROM the date of the award, prefer an appeal, to the High
Court:
Provided that the High Court may entertain the appeal after the
expiry of the said period of ninety days, if it is satisfied that the
appellant was prevented by sufficient cause FROM preferring the appeal
in time.
----------------------------------------------------------------------
1 Ins. by Act 56 of 1969,s, 62 (w.e.f. 2-3-1970)
2 Subs. by Act 47 of 1982, S. 19 (w.e.f. 1.10.1982).
----------------------------------------------------------------------
125.
(2) No appeal shall lie against any award of a Claims Tribunal,
if the amount in dispute in the appeal is less than two thousand
rupees.
110E.Recovery of money FROM insurer as arrear of land revenue.
Where any money is due FROM 1[any person] under an award, the Claims
Tribunal may, on an application made to it by the person entitled to
the money, issue a certificate for the amount to the Collector and the
Collector shall proceed to recover the same in the same manner as an
arrear of land revenue.
110F. Bar of jurisdiction of Civil Courts. Where any Claims
Tribunal has been constituted for any area, no Civil Court shall have
jurisdiction to entertain any question relating to any claim for
compensation which may be adjudicated upon by the Claims Tribunal for
that area, and no injunction in respect of any action taken or to be
taken by or before the Claims Tribunal in respect of the claim for
compensation shall be granted by the Civil Court.]
111. Powers to make rules.
111.Powers to make rules.(1) The Central Government may make
rules for the purpose of carrying INTO effect the provisions of this
Chapter.
(2) Without prejudice to the generality of the foregoing power,
such rules may provide for-
(a)the forms to be used for the purposes of this Chapter;
(b)the making of applications for and the issue of
certificates of insurance ;
(c)the issue of duplicates to REPLACE certificates of
insurance 2[lost, destroyed or mutilated];
(d)the custody, production, cancellation and surrender of
certificates of insurance ;
(e)the records to be maintained by insurers of policies of
insurance issued under this Chapter;
(f)the identification by certificates or otherwise of persons
or vehicles exempted FROM the provisions of this Chapter;
(g) the furnishing of information respecting policies of
insurance by insurers;
(h) the carrying INTO effect of the. provisions of section
108;
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1 Subs. by Act 56 of 1969 S. 63, for "an insurer" (w.e.f. 2-3-
1970).
2 Subs. by Act 100 of 1956, s. 81, for "lost or destroyed"
(w.e.f. 16-2-1957).
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126.
(i)adapting the provisions of this Chapter to vehicles
brought INTO 1[India] by persons making only a temporary stay
therein 2[or to vehicles registered in the State of Jammu and
Kashmir or in a reciprocating country and operating on any
route or within any area in India] by applying those
provisions with prescribed modifications; and
(j) any other matter which is to be or may be prescribed.
3[111A. Power of State Government to make rules. A State
Government may make rules for the purpose of carrying INTO effect the
provisions of sections 110 to 110E, and in particular, such rules may
provide for all or any of the following matters, namely:-
(a)the form of application for claims for compensation and
the, particulars it may contain ; and the fees, if any, to be
paid in respect of such applications;
(b)the procedure to be followed by a Claims Tribunal in
holding an inquiry under this Chapter ;
(c) the, powers vested in a Civil Court which 4[and the
fees (if any on payment of which] may be exercised by a
Claims Tribunal ;
(d) the form and the manner in which 4[and the fees (if
any) on payment of which] an appeal may be preferred against
an award of a Claims Tribunal; and
(e) any other matter which is to be, or maybe, prescribed.]
CHAP
OFFENSES, PENALTIES AND PROCEDURE
Last updated on February, 2008
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