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.