Section 154 of MVA : Section 154: Saving In Respect Of Sections 151, 152 And 153

Explanation using Example

Example of Section 154 of The Motor Vehicles Act, 1988

Imagine that Mr. Sharma has two car insurance policies: one for his own car and another where he is the insurer for his friend's car. One day, Mr. Sharma's car is involved in an accident, causing damage to a third party's property. While claiming insurance, Section 154 clarifies that Mr. Sharma's liability as an insurer for his friend's car is not considered a "liability to third parties" for his own car's insurance claim. Therefore, when he seeks to claim from his insurance for the accident, his role as an insurer for another policy is irrelevant.

Additionally, if the insurance company that provides coverage for Mr. Sharma's car decides to undergo voluntary reconstruction or amalgamation with another company, the protections offered to third parties under sections 151, 152, and 153 of the Act would not be affected by this corporate restructuring.