Motor Vehicles Act Section 157 — Transfer of certificate of insurance
CHAPTER IX MOTOR VEHICLES TEMPORARILY LEAVING OR VISITING INDIA
Civil
Summary
Sub-section (1) states that when a person who holds a certificate of insurance transfers ownership of the insured motor vehicle to another person, along with the insurance policy related to that vehicle, the certificate of insurance and the policy described in it are considered to have been automatically transferred to the new owner. This transfer takes effect from the date the vehicle itself is transferred.
The Explanation clarifies that this automatic transfer includes both the rights and the liabilities attached to the certificate of insurance and the policy of insurance.
Sub-section (2) requires the new owner (the transferee) to apply to the insurer within fourteen days from the date of the vehicle transfer, using the prescribed form, to have the insurer update the certificate of insurance and the policy to reflect the change of ownership. The insurer is then required to make the necessary changes to the certificate and the policy regarding the transfer of insurance.
Official Text
(1) Where a person, in whose favour the certificate of insurance has been issued in accordance with the provisions of this Chapter, transfers to another person the ownership of the motor vehicle in respect of which such insurance was taken together with the policy of insurance relating thereto, the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer.
Explanation.—For the removal of doubts, it is hereby clarified that such deemed transfer shall include transfer of rights and liabilities of the said certificate of insurance and policy of insurance.
(2) The transferee shall apply within fourteen days from the date of transfer in the prescribed form to the insurer for making necessary changes in regard to the fact of transfer in the certificate of insurance and the policy described in the certificate in his favour and the insurer shall make the necessary changes in the certificate and the policy of insurance in regard to the transfer of insurance.