(1) No person against whom a claim is made in respect of any liability referred to in clause (b) of sub-section (1) of section 147 shall, on demand by or on behalf of the person making the claim, refuse to state whether or not he was insured in respect of that liability by any policy issued under the provisions of this Chapter, or would have been so insured if the insurer had not avoided or cancelled the policy. Nor shall he refuse, if he was or would have been so insured, to give such particulars with respect to that policy as were specified in the certificate of insurance issued in respect thereof.
(2) In the event of any person becoming insolvent or making a composition or arrangement with his creditors, or in the event of an order being made for the administration of the estate of a deceased person according to the law of insolvency, or in the event of a winding-up order being made or a resolution for a voluntary winding up being passed with respect to any company, or of a receiver or manager of the company’s business or undertaking being duly appointed, or of possession being taken by or on behalf of the holders of any debentures secured by a floating charge on any property comprised in or subject to the charge, it shall be the duty of the insolvent debtor, personal representative of the deceased debtor or company, as the case may be, or the official assignee or receiver in insolvency, trustee, liquidator, receiver or manager, or person in possession of the property, to give, at the request of any person claiming that the insolvent debtor, deceased debtor, or company is under such liability to him as is covered by the provisions of this Chapter, such information as may reasonably be required by him for the purpose of ascertaining whether any rights have been transferred to and vested in him by section 150, and for the purpose of enforcing such rights, if any. Any such contract of insurance as purports, whether directly or indirectly, to avoid the contract or to alter the rights of the parties thereunder upon the giving of such information in the events aforesaid, or otherwise to prohibit or prevent the giving thereof in the said events, shall be of no effect.
(3) If, from the information given to any person in pursuance of sub-section (2) or otherwise, he has reasonable ground for supporting that there have or may have been transferred to him under this Chapter rights against any particular insurer, that insurer shall be subject to the same duty as is imposed by the said sub-section on the persons therein mentioned.
(4) The duty to give the information imposed by this section shall include a duty to allow all contracts of insurance, receipts for premiums, and other relevant documents in the possession or power of the person on whom the duty is so imposed to be inspected and copies thereof to be taken.
Simplified Explanation
Section 151 of the Motor Vehicles Act in India pertains to the duty of individuals involved in a motor vehicle accident to provide information regarding their insurance. This section is critical as it mandates that, at the scene of an accident or shortly thereafter, relevant insurance details must be shared with the parties involved and potentially with law enforcement if necessary. The provision aims to facilitate the swift processing of claims and ensure that victims have the necessary information to pursue compensation.
Overview of Section 151
This section emphasizes the importance of transparency and accessibility of information in the aftermath of an accident. It ensures that all parties involved have the necessary details to make insurance claims and seek compensation without undue delay.
Key Elements of Section 151
- Obligation to Provide Information:
- Individuals involved in an accident are required to provide information about their insurance policy to other parties involved in the accident. This includes the name of the insurance company, the policy number, and the period for which the insurance is effective.
- Circumstances Triggering This Duty:
- The duty to provide insurance information is typically triggered when an accident results in injury, death, or significant property damage. The specific requirements may vary based on the severity of the accident and local regulations.
- Procedure for Providing Information:
- The information must be provided at the scene of the accident if requested by the authorities or other involved parties. If not immediately available, it should be provided within a specified timeframe, typically as soon as reasonably possible.
- Legal Requirement for Compliance:
- Failure to provide insurance information can result in penalties, including fines and other legal consequences. This provision is enforced to ensure that all parties have fair access to relevant information for legal and compensation processes.
- Role of Law Enforcement:
- Police or other law enforcement officers at the scene of an accident can require individuals involved to provide insurance information. They can use this information to facilitate the exchange between the parties and ensure compliance with legal requirements.
Practical Implications
- Facilitation of Claims Processing: Quick access to insurance information allows for faster initiation and processing of insurance claims, helping victims receive compensation sooner.
- Legal and Financial Protection: Ensuring that insurance details are exchanged at the accident scene helps protect the legal and financial interests of all parties involved. It provides a clear basis for any subsequent insurance claims or legal action.
- Promotes Accountability: This provision promotes accountability by ensuring that drivers carry valid insurance and are prepared to disclose this information when required, contributing to a responsible driving culture.
Conclusion
Section 151 of the Motor Vehicles Act serves as a critical component in the management of motor vehicle accidents, emphasizing the necessity of immediate and transparent sharing of insurance information. This ensures that all parties have the necessary data to pursue their rights and claims without unnecessary delays, thereby supporting the principles of justice and compensation in the aftermath of road accidents.
