CHAPTER IX
INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS
150.
Right of third parties against insurers in insolvency of the insured,- (1)
Where under any contract of insurance effected in accordance with the provisions
of this Chapter, a person is insured
against liabilities which he may incur
to third parties, then-
(a)
In the event of the person becoming insolvent or
making a composition or arrangement with his creditors; or
(b)
When the insured person is a company, in the event
of winding or order being made or a
resolution for the winding up being passed with respect to the company or of a receiver or a 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 of any property comprised in or subject to the charge.
If, either before or after that event,
any such liability is incurred by the insured person, his rights against the insurer
under this contract in respect of the liability shall, notwithstanding anything
to the contrary in any provision of law,
be transferred to and vest in the third party to whom the liability was so incurred.
(2) Where an order for the administration of the estate of a deceased
debtor is made according to the law of insolvency, then, if any debt provable in insolvency is owning
by the deceased in respect of a liability to a third party against which he was
insured under a contract of insurance in accordance with the provisions of this
Chapter, the deceased debtors rights against the insurer in respect of that
liability, shall, notwithstanding anything to the contrary in any provisions of
law, be transferred to and vest in the person whom the debt is owing.
(3) Any condition in a policy issued for the
purpose of this Chapter purporting either directly or indirectly to avoid the
policy or to alter the rights of the parties thereunder upon the happening to
the insured person of any of the events specified in clause (a) or clause (b)
of sub-section (1) or upon the making of an order for the administration of the
estate of a deceased debtor according to the law of insolvency shall be of no
effect.
(4) Upon a transfer under sub-section (1) or
sub-section (2), the insurer shall be under the same liability to the third
party as he would have been to the insured person, but-
(a) if the liability of the insurer to the insured person exceeds the liability
of the insurer to the third party, nothing in this Chapter shall affect the rights
of the insured person against the insurer in respect of the excess, and
(b) if the liability of the insurer to the insured person is less than the
liability of insured person to the third party, nothing in this Chapter shall
affect the rights of the third party against
the insured person in respect of the balance.
151. Duty to give information as to the insurance,- (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 174 shall on demand by or on behalf of the person making the claim
refuses to state whether or not he was insured in respect of that liability by any opolicy issued under the provisions of
this Chapter, 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 the deceased person according to
the law of insolvency, or in the event of a winding up order being made or a resolution
for voluntary winding up being passed with respect to any company or a receiver
or manager of the company’s business or undertaking being duly appointed or of
possession being take 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 may as 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, and any such contract of insurance as purports whether directly
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 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,
receipt 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 takenChapter 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.
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