Motor Vehicles Act Section 170 — Impleading insurer in certain cases

CHAPTER XII CLAIMS TRIBUNALS

Civil

Summary

During an inquiry, if the Claims Tribunal is satisfied that there is collusion between the person making the claim and the person against whom the claim is made, the Tribunal may, for reasons to be recorded in writing, direct that the insurer who may be liable for the claim be added as a party to the proceeding.

Under clause (b), if the person against whom the claim is made has failed to contest the claim, the Tribunal may similarly, for reasons to be recorded in writing, direct that the insurer who may be liable be added as a party to the proceeding.

Once the insurer is added as a party in either situation, the insurer has the right to contest the claim on all or any of the grounds that are available to the person against whom the claim has been made, without prejudice to the provisions contained in sub-section (2) of section 150.

Official Text

Where in the course of any inquiry, the Claims Tribunal is satisfied that—

(a) there is collusion between the person making the claim and the person against whom the claim is made; or

(b) the person against whom the claim is made has failed to contest the claim, it may, for reasons to be recorded in writing, direct that the insurer who may be liable in respect of such claim, shall be impleaded as a party to the proceeding and the insurer so impleaded shall thereupon have, without prejudice to the provisions contained in sub-section (2) of 2[section 150], the right to contest the claim on all or any of the grounds that are available to the person against whom the claim has been made.

Sections referred to

Motor Vehicles Act §150 — Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks

Referred to by

Motor Vehicles Act §176 — Power of State Government to make rules

Related Judgments

Judgment delivered on: December 07, 2007; National Insurance Co. Ltd. vs Dhan Kumari Chhetri & Ors — Delhi High Court (2007)
UNITED INDIA INSURANCE CO. LTD. vs JYOTSNABEN SUDHIRBHAI PATEL AND ORS — Supreme Court of India (2003)
Judgment delivered on: December 11, 2007; National Insurance Co. Ltd. vs Mamta & Ors — Delhi High Court (2007)
UNITED INDIA INSURANCE CO. LTD. vs SHILA DATTA & ORS — Supreme Court of India (2011)
NATIONAL INSURANCE COMPANY LTD. vs MEGHJI NARAN SORATIYA & ORS — Supreme Court of India (2009)
NATIONAL INSURANCE CO. LTD., CHANDIGARH vs NICOLLETTA ROHTAGI AND ORS — Supreme Court of India (2002)