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Report No. 106

5.8. Recommendation to revise section 103A, Motor Vehicles Act, and for consequential changes.-

In the light of what we have stated above, we recommend that section 103A, Motor Vehicles Act, 19391, should be revised on the lines indicated in this chapter. The gist of what we have in mind regarding section 103A is as under:

(a) When the transfer of ownership in Motor Vehicle is transferred, the policy of insurance thereof shall stand transferred to the transferee with effect from the date of such transfer of ownership.

Such consequential changes as may be necessary in the other sections of the Act, and in the rules issued under the Act, will have to be carried out.

(b) If notice of transfer of the motor vehicle has not been given by the transferor or the transferee, before the institution by the transferee of a suit against the insurer based on the policy of insurance, the court may take that fact into account in awarding costs in such a suit.

K.K. Mathew Chairman.

J.P. Chaturvedi Member.

Dr. M.B. Rao Member.

P.M. Bakshi Part-time Member.

Vepa P. Sarathi Part-time Member.

A.K. Srinivasamurthy Member-Secretary.

Dated: 30th November, 1984.

1. Paras. 5.6 (ii) and 5.7, supra.

Section 103A of the Motor Vehicles Act, 1939 - Effect of Transfer of a Motor Vehicle on Insurance Back

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