Report No. 85
1.6. Compulsory insurance.-
Insurance against liability incurred to a third party could have been effected even before the Act. But before the Act, the third party, i.e. the party injured by the accident had no right to obtain the benefit of motor insurance from the insurer, there being no privity of contract between the third party and the insurer. The Act for the first time conferred this benefit. The provisions for the insurance of motor vehicles against third party risks actually came into force in 1946.
Back
