Chapter IX Insurance of Motor Vehicles against third party risks

 

451.Insurance Certificate – Requisite condition for issue of permit :- No permit shall be issued in respect of any transport vehicle unless it is covered with a valid certificate of insurance and satisfied the requirements of Chapter XI of the Act. 452. Insurance certificate, pre-requisite condition for payment of motor vehicles tax :- The owner of a motor vehicle applying to pay the tax on the vehicle shall forward with the application a certificate of insurance relating to the vehicle and complying with the requirements of Chapter XI of the Act and valid,-             (a)     if the application is made prior to the commencement of the period for which the tax is tendered, on the                      first day of that period; or             (b)    if the application is made during the period for which the tax is tendered, on the date on which the                      application is made: Provided that the owner of a vehicle exempted under sub-section (2) of Section 146 shall forward in place of the certificate of insurance the certificate prescribed in Rule 12 of the Motor Vehicles (Third Party insurance) Rules, 1946. 453. Cover Note – Intimation of :- An insurer required under Section 147 to notify the fact of not issuing the policy of insurance following the issue of cover note shall notify that fact to the Registering Authority having jurisdiction over the area where the owner of the vehicle covered by the cover note normally resides or has his place of business.