Compulsory third-party insurance, types of motor insurance and the insurance claim procedure

LUG-101 Law of Torts including Motor Vehicle Accident and Consumer Protection Act, Unit V: Insurance of motor vehicles and the procedure for making a motor vehicle insurance claim. · LLB · 60 min

Chapter XI of the Motor Vehicles Act (ss. 145-164D, as substituted in 2019): the definitions in s. 145, the necessity for insurance against third party risks (s. 146), the requirements and limits of a policy (s. 147), the types of motor insurance, the insurer's duty to satisfy awards and its limited defences (s. 150), pay and recover (Swaran Singh, Baljit Kaur), the reading down of exclusion clauses (Skandia v. Kokilaben), the licence question (Mukund Dewangan), transfer of the vehicle (s. 157), the claim procedure and driving uninsured (s. 196). It answers "Compulsory insurance" (2019-20, Q A 13), "necessity for insurance against third party risk" (2023-24, Q 5(c)) and "types of insurance" (2024-25, Q 5(a)(ii)).

Objectives

Quote s. 146 and explain why third-party insurance is compulsory and who is exempt.
State the requirements of a policy under s. 147, the persons it must cover and those it need not cover.
Classify the types of motor insurance: Act-only third-party, comprehensive (package), standalone own-damage, personal accident and long-term covers.
List the insurer's defences under s. 150(2) and explain pay and recover with Swaran Singh, Baljit Kaur and Skandia.
Describe step by step how a third-party claim and an own-damage claim are made.

Slides

Why insurance is compulsory: the scheme of Chapter XI
Necessity for insurance against third party risks (s. 146)
Requirements of a policy and limits of liability (s. 147)
Who is covered and who is not
Types of motor insurance
Duty of insurers to satisfy awards and their defences (s. 150)
Pay and recover: Swaran Singh, Baljit Kaur and Mukund Dewangan
Reading down exclusion clauses: Skandia Insurance v. Kokilaben (1987)
Insolvency, information, death and transfer (ss. 151-157)
Making a motor insurance claim: step by step

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