Amendment status not verified — confirm the current text below against the official source.
Substituted for “injury to any person” by Act 54 of 1994, S.46 (w.e.f. 14-11- 1994). 173 (a) save as provided in clause (b), the amount of liability incurred. (b) in respect of damage to any property of a third party, a limit of rupees six thousand : Provided that any policy of insurance issued with any limited liability and in force, immediately before the commencement of this Act, shall continue to be effective for a period of four months after such commencement or till the date of expiry of such policy whichever is earlier. (3) A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by whom the policy is effected a certificate of insurance in the prescribed form and containing the prescribed particulars of any condition subject to which the policy is issued and of any other prescribed matters; and different forms, particulars and matters may be prescribed in different cases. (4) where a cover note issued by the insurer under the provisions of this Chapter or the rules made thereunder is not followed by a policy of insurance within the prescribed time, the insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify the fact to the registering authority in whose records the vehicle to which the cover note relates has been registered or to such other authority as the State Government may prescribe. (5) Notwithstanding anything contained in any law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons. Corresponding Law. – Section 147 corresponds to section 95 of the Motor Vehicle Act, 1939. Objects and Reasons. – Clause 147 lays down the requirements of the policies and the limit of liability in respect of passengers and persons other than passengers in relation to passenger vehicles and goods carriages. 174