Motor Vehicles Act, 1988
170. Impleading insurer in certain cases.
Where in the course of any inquiry, the Claims Tribunal is satisfied that-
There is collusion between the person making the claim and the person against whom the claim is made, or
the person against whom the claim is made has failed to contest the claim, it may, for reasons to be recorded in writing, direct that the insurer who may be liable in respect of such claim, shall be imp leaded as a party to the proceeding and the insurer so imp leaded shall thereupon have, without prejudice to the provisions contained in sub-section (2) of section 149, 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.