22

1409070/2020/MVL Section

SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 21

matters; and different forms, particulars and matters may be prescribed in different
cases.
(4) Notwithstanding anything contained in this Act, a policy of Insurance issued
before the commencement of the Motor Vehicles (Amendment) Act, 2019 shall be
continued on the existing terms under the contract and the provisions of this Act shall
apply as if this Act had not been amended by the said Act.
(5) Where a cover note issued by the insurer under the provisions of this Chapter
or the rules or regulations made thereunder is not followed by a policy of insurance
within the specified 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 or to such
other authority as the State Government may prescribe.
(6) Notwithstanding anything contained in any other 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.
148. Where, in pursuance of an arrangement between India and any reciprocating Validity of
country, the motor vehicle registered in the reciprocating country operates on any policies of
insurance
route or within any area common to the two countries and there is in force in relation to issued in
the use of the vehicle in the reciprocating country, a policy of insurance complying reciprocating
with the requirements of the law of insurance for the time being in force in that country, countries.
then, notwithstanding anything contained in section 147 but subject to any rules
which may be made under section 164B such policy of insurance shall be effective
throughout the route or area in respect of which the arrangement has been made, as if
the policy of insurance had complied with the requirements of this Chapter.
149. (1) The insurance company shall, upon receiving information of the accident, Settlement by
either from claimant or through accident information report or otherwise, designate an insurance
company and
officer to settle the claims relating to such accident. procedure
(2) An officer designated by the insurance company for processing the settlement therefor.
of claim of compensation may make an offer to the claimant for settlement before the
Claims Tribunal giving such details, within thirty days and after following such
procedure as may be prescribed by the Central Government.
(3) If, the claimant to whom the offer is made under sub-section (2),—
(a) accepts such offer,—
(i) the Claims Tribunal shall make a record of such settlement, and
such claim shall be deemed to be settled by consent; and
(ii) the payment shall be made by the insurance company within a
maximum period of thirty days from the date of receipt of such record of
settlement;
(b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal
to adjudicate such claim on merits.
150. (1) If, after a certificate of insurance has been issued under sub-section (3) Duty of
of section 147 in favour of the person by whom a policy has been effected, judgment insurers to
satisfy
or award in respect of any such liability as is required to be covered by a policy under judgments and
clause (b) of sub-section (1) of section 147 (being a liability covered by the terms of the awards against
policy) or under the provisions of section 164 is obtained against any person insured persons
by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel insured in
respect of
or may have avoided or cancelled the policy, the insurer shall, subject to the provisions third party
of this section, pay to the person entitled to the benefit of the award any sum not risks.