Where, in pursuance of an arrangement between India and any reciprocating country, any motor vehicle registered in the reciprocating country operates on any route or within any area common to the two countries and there is in force in relation to the use of the vehicle in the reciprocating country, a policy of insurance complying with the requirements of the law of insurance in force in that country, then, notwithstanding anything contained in section 147 but subject to any rules which may be made under section 164, such policy of insurance shall be effective throughout the route or area in respect of which the arrangement has been made, as if the policy of insurance had complied with the requirements of this Chapter.
Simplified Explanation
Section 148 of the Motor Vehicles Act in India addresses the validity of insurance policies issued in reciprocating countries. This provision facilitates the recognition of motor vehicle insurance policies from other countries that have reciprocal arrangements with India. It simplifies the process for vehicles registered in these countries to be used in India without the need for additional insurance, provided their existing policies meet specific criteria set by the Indian government.
Overview of Section 148
This section outlines how insurance policies issued in countries that have a reciprocal agreement with India can be considered valid within India. These agreements aim to ease the movement of vehicles between countries by acknowledging each other’s legal frameworks regarding motor vehicle insurance.
Key Elements of Section 148
- Reciprocal Agreements:
- Reciprocal agreements are formal arrangements between two countries that agree to recognize certain legal documents and policies from each other, including motor vehicle insurance. The specifics of these agreements vary depending on the bilateral or multilateral treaties.
- Validity of Foreign Policies:
- An insurance policy issued in a reciprocating country is recognized in India if it covers the insured against liabilities that might be incurred in respect to the death or bodily injury to a third party or damage to third-party property, consistent with the minimum standards set by Indian law.
- Certification and Documentation:
- Vehicles covered under such policies may need to carry and, if requested, display evidence (like an international motor insurance card, commonly known as the Green Card) that the vehicle is insured in accordance with the standards required in India.
- Regulatory Oversight:
- The Indian government, through the Ministry of Road Transport and Highways or an authorized body, periodically reviews and determines which countries qualify as reciprocating countries. This determination is based on the comparability of legal standards related to third-party insurance liabilities.
Practical Implications
- Ease of Travel for International Vehicles: Vehicles from reciprocating countries can travel in India without the need for a new or separate insurance policy, easing international travel and commerce.
- Legal Compliance for Foreign Vehicles: Owners of vehicles registered in reciprocating countries must ensure their insurance policies meet Indian requirements, particularly when these vehicles are intended for prolonged use within India.
- Insurance Standards: Insurers in reciprocating countries need to be aware of the Indian insurance requirements for third-party liabilities to ensure their policies are compliant when issuing policies to vehicles that might travel to India.
Conclusion
Section 148 significantly contributes to the international cooperation in motor vehicle insurance, facilitating easier and legally compliant cross-border movement of vehicles. By recognizing the validity of foreign insurance policies under specified conditions, this section supports tourism, trade, and personal travel between India and reciprocating countries, while ensuring that the protections afforded by insurance coverage are maintained.
