Motor Vehicles Act, 1988 - CHAPTER IX INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS, section 152, section 153 and section 154

CHAPTER IX

INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS
sections 152, section 153, and section 154

152. Settlement between the insurers and the insured persons,- (1) No settlement made by an insurer in respect of any claim which might be made by a third party in respect of any liability  of the nature referred to in clause (b) of sub-section (1) of section 147 shall be valid unless such third party is a party of the settlement.

 (2) Where a person who is insured under a policy issued for the purpose of this Chapter has become insolvent, or where such insured person is a company, a winding  up order has been made or a resolution for a voluntary wind up has been  passed with respect to the company, no agreement made between the insurer and the insured person after the liability has been incurred to a third party and after the commencement of the insolvency or winding up, as the case may be, or any waver, assignment or other disposition made by or payment made to the insured person after the commencement of aforesaid shall be effective to defeat the rights transferred to the third party under this Chapter, but those rights shall be the same as if no such agreement or waiver, assignment or disposition or payment has been made.

153. Savings in respect of sections 150, 151, and 152,- (1) For the purpose of sections 150, 151 and 152 a reference to “liabilities to third parties” in relation to a person under any such policy of insurance shall not include a reference to any liability of that person in the capacity of insurer under some other policy of insurance.

 (2) The provisions of sections 150, 151, and 152 shall not apply where a company is voluntarily merely for the purpose of reconstruction or of an amalgamation with another company.

154. Insolvency of insured persons not to affect the liability of insured or claims of third parties,- Where a certificate of insurance has been issued to the person by whoma policy has been effected, the happening in relation to any person insured by the policy of any such event as mentioned in sub-section (1) or sub-section (2 of section 150 shall, notwithstanding anything contained in this Chapter, not affect any liability of that person of the nature referred to in clause (b) of sub-section (1) of section 147; but nothing in this section shall affect any rights against the insurer conferred under the provisions of sections 150, 151, 152 and on the person to whom the liability was incurred.