Section 157 of MVA : Section 157: Transfer Of Certificate Of Insurance

Explanation using Example

Example of Section 157 of The Motor Vehicles Act, 1988:

Imagine that Mr. Sharma sells his car to Ms. Gupta. Alongside the car, Mr. Sharma also hands over the existing insurance policy documents to Ms. Gupta. According to Section 157, the certificate of insurance and the policy are deemed to be transferred to Ms. Gupta, the new owner, from the date of the vehicle's transfer.

Now, Ms. Gupta must inform the insurance company about this change in ownership and request them to update the insurance certificate and policy records. She has to do this within fourteen days following the car transfer. The insurance company will then endorse the policy and the certificate with Ms. Gupta's name, effectively transferring the insurance coverage along with the vehicle's ownership.