Motor Vehicles Act Section 152 — Duty to give information as to insurance
CHAPTER IX MOTOR VEHICLES TEMPORARILY LEAVING OR VISITING INDIA
Civil
Summary
Sub-section (1) requires a person against whom a claim is made for liability covered by the motor vehicle insurance provisions to answer, when asked by or on behalf of the claimant, whether they were insured for that liability under a policy issued under this Chapter. They must also state whether they would have been insured if the insurer had not avoided or cancelled the policy. If they were or would have been insured, they must give particulars of the policy as shown in the certificate of insurance.
Sub-section (2) deals with situations where the person liable becomes insolvent, makes an arrangement with creditors, dies and their estate is administered under insolvency law, or is a company that goes into winding up, has a receiver or manager appointed, or has possession taken by debenture holders under a floating charge. In such cases, the insolvent debtor, the deceased debtor's personal representative, the company, or the relevant official (such as an official assignee, receiver, trustee, liquidator, or manager) must, on request from a person claiming that the debtor or company owes them a liability covered by this Chapter, give information reasonably needed to find out whether any rights have transferred to the claimant under section 151 and to enforce those rights. Any insurance contract that tries to avoid the contract or change the parties' rights when such information is given, or that prohibits or prevents giving that information in these events, is void.
Sub-section (3) states that if, based on information given under sub-section (2) or otherwise, a person has reasonable grounds to believe that rights against a particular insurer have or may have been transferred to them under this Chapter, that insurer has the same duty to give information as the persons mentioned in sub-section (2).
Sub-section (4) provides that the duty to give information under this section includes a duty to allow inspection of all insurance contracts, premium receipts, and other relevant documents in the possession or control of the person who has the duty, and to allow copies of those documents to be taken.
Official Text
(1) No person against whom a claim is made in respect of any liability referred to in clause (b) of sub-section (1) of section 147 shall, on demand by or on behalf of the person making the claim, refuse to state whether or not he was insured in respect of that liability by any policy issued under the provisions of this Chapter, or would have been so insured if the insurer had not avoided or cancelled the policy, nor shall he refuse, if he was or would have been so insured, to give such particulars with respect to that policy as were specified in the certificate of insurance issued in respect thereof.
(2) In the event of any person becoming insolvent or making an arrangement with his creditors or in the event of an order being made for the administration of the estate of a deceased person according to the law of insolvency, or in the event of a winding-up order being made or a resolution for a voluntary winding-up being passed with respect to any company or of a receiver or manager of the company’s business or undertaking being duly appointed or of possession being taken by or on behalf of the holders of any debentures secured by a floating charge on any property comprised in or subject to the charge, it shall be the duty of the insolvent debtor, personal representative of the deceased debtor or company, as the case may be, or the official assignee or receiver in insolvency, trustee, liquidator, receiver or manager, or person in possession of the property to give, on the request of any person claiming that the insolvent debtor, deceased debtor or company is under such liability to him as is covered by the provision of this Chapter, such information as may reasonably be required by him for the purpose of ascertaining whether any rights have been transferred to and vested in him by section 151 and for the purpose of enforcing such rights, if any and any such contract of insurance as purports whether directly or indirectly to avoid the contract or to alter the rights of the parties thereunder upon the giving of such information in the events aforesaid, or otherwise to prohibit or prevent the giving thereof in the said events, shall be of no effect.
(3) If, from the information given to any person in pursuance of sub-section (2) or otherwise, he has reasonable ground for supporting that there have or may have been transferred to him under this Chapter rights against any particular insurer, that insurer shall be subject to the same duty as is imposed by the said sub-section on the persons therein mentioned.
(4) The duty to give the information imposed by this section shall include a duty to allow all contracts of insurance, receipts for premiums, and other relevant documents in the possession or power of the person on whom the duty is so imposed to be inspected and copies thereof to be taken.