Section 148 of MVA : Section 148: Validity Of Policies Of Insurance Issued In Reciprocating Countries

Explanation using Example

Imagine a transport company based in Nepal, which is a reciprocating country with India, has a fleet of trucks that carry goods between Kathmandu and New Delhi. One of these trucks is involved in an accident while in India. The truck is covered by a Nepalese insurance policy that meets Nepal's insurance requirements. Under Section 148 of The Motor Vehicles Act, 1988, despite the differences between Indian and Nepalese insurance laws, the Nepalese insurance policy is recognized in India for the duration of the truck's journey within the agreed routes or areas. Therefore, any claims arising from the accident can be processed in India as if the insurance policy complied with Indian insurance requirements, facilitating a smoother resolution for the transport company and the involved parties.