The Motor Vehicles Act, 1988

148. 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 147  but subject  to any  rules which  may be  made under section 164 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.