Section 147 of MVA : Section 147: Requirements Of Policies And Limits Of Liability

MVA

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Explanation using Example

Imagine John purchases a new car and wants to drive it on public roads. As per Section 147 of The Motor Vehicles Act, 1988, John is required to have a valid insurance policy for his vehicle. This policy must be issued by an authorised insurer and should cover:

  • Liability for death or bodily injury to any person caused by the car in a public place.
  • Liability for damage to third-party property caused by the car.
  • Liability for death or bodily injury to passengers, except for non-paying passengers in a goods transport vehicle.

John buys an insurance policy that meets these requirements, ensuring that if his car is involved in an accident that harms another person or damages their property, the insurance will cover the liabilities up to the specified limits.