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Report No. 149

Section 147:

2. (i) For clause (b) of sub-section (1) of section 147, substitute the following:

"(b) insures the person or class of persons specified in the policy to the extent specified in sub-section (2) against any liability which may be incurred by him (including the one under section 140) 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."

(Para 3.9)

(ii) The following proviso be substituted in place of the existing proviso to sub-section (1) of section 147:

"Provided that a policy referred to in this sub-section shall not be required to cover any contractual liability."

(Para 3.15)

(iii) For the main part of sub-section (2) of section 147 as at present existing, substitute the following:

"Section 147(2) Subject to the proviso to sub-section (1), a policy of insurance referred to in sub-section (1) shall cover any liability incurred in respect of any accident upto the full amount of the liability incurred by the insured in respect of the death of, or bodily injury to, any person or the damage to any property of a third party caused by or arising out of the use of the vehicle in a public place."

The existing proviso to section 147(2) will, however, continue to read as before.

(Para 3.17)



Removing certain deficiencies in the Motor Vehicles Act, 1988 Back




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