Motor Vehicles Act: Section 159 – Production of certificate of insurance on application for authority to use vehicle.

A State Government may make rules requiring the owner of any motor vehicle, when applying whether by payment of a tax or otherwise for authority to use the vehicle in a public place, to produce such evidence as may be prescribed by those rules to the effect that either—

(a) on the date when the authority to use the vehicle comes into operation, there will be in force the necessary policy of insurance in relation to the use of the vehicle by the applicant or by other persons on his order or with his permission, or

(b) the vehicle is a vehicle to which section 146 does not apply.

Simplified Explanation

Section 159 of the Motor Vehicles Act in India mandates the production of a certificate of insurance when applying for the authority to use a vehicle on public roads. This section ensures that all vehicles being driven on public roads are covered by a valid insurance policy, specifically a policy that covers third-party liabilities as required by law.

Overview of Section 159

The primary goal of this section is to ensure that no vehicle can be legally used on public roads without proof of valid insurance. When applying for registration, renewal, or any form of permission or authority to use a motor vehicle, the vehicle owner must produce a certificate of insurance, demonstrating compliance with the statutory insurance requirements.

Key Elements of Section 159

  1. Requirement to Produce Insurance Certificate:
    • When applying for registration or any authority to use a motor vehicle, such as renewal of registration, transfer of ownership, or obtaining a permit for commercial purposes, the applicant must produce a valid certificate of insurance.
    • This certificate must demonstrate that the vehicle has insurance coverage for third-party risks, which is a mandatory requirement under the Motor Vehicles Act.
  2. Verification of Insurance:
    • The appropriate authority (such as the Regional Transport Office) will verify the insurance certificate to ensure that it meets the legal requirements before granting the application. The application process cannot proceed without this verification.
  3. Ensuring Continuous Coverage:
    • This section ensures that at the time of applying for the right to use a vehicle (whether for the first time or for a renewal), the vehicle is continuously insured. This provision reduces the chances of uninsured vehicles being driven on public roads, protecting the public from the risk of accidents involving uninsured vehicles.
  4. Commercial and Personal Vehicles:
    • The requirement applies to both personal and commercial vehicles, ensuring that vehicles being used for transporting passengers or goods also have valid insurance policies in place before permits or authorities are issued.
  5. Legal Implications:
    • If a vehicle owner fails to produce the required certificate of insurance when applying for the authority to use the vehicle, the application may be denied, and the vehicle cannot legally be used on public roads until a valid insurance policy is in place.

Practical Implications

  • Mandatory Insurance Compliance: This section reinforces the importance of mandatory third-party insurance for all vehicles. Vehicle owners must ensure their insurance is up to date when applying for vehicle-related authorities.
  • Protection Against Uninsured Vehicles: By making insurance verification a prerequisite for the issuance of any permission or authority to use a vehicle, Section 159 minimizes the risk of uninsured vehicles operating on public roads, thereby protecting the public from uninsured liabilities.
  • Administrative Efficiency: Authorities like the Regional Transport Offices are empowered to ensure that vehicles operating on roads are insured, thus enforcing compliance with insurance regulations.

Conclusion

Section 159 of the Motor Vehicles Act plays a vital role in ensuring that no vehicle is used on public roads without having valid insurance coverage. By making it mandatory to produce a certificate of insurance when applying for registration, renewal, or any permit to use a vehicle, this section supports the broader goal of safeguarding third parties and ensuring that compensation can be provided in case of accidents. The provision also promotes compliance with insurance requirements, reducing the risks associated with uninsured vehicles on the road.

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