Section 147 MV Act
Do I need third‑party insurance for my vehicle and what does it cover?
Short answer
Yes, you must have a third‑party policy from an authorized insurer that covers death or injury to occupants and third‑party property caused by the vehicle’s use in public places.
In detail
The law requires every motor vehicle to have a third‑party insurance policy issued by an authorised insurer. The policy must protect you against any legal responsibility for the death or bodily injury of any person carried in the vehicle, including the owner or their authorised representative, as well as damage to any third‑party property. It also covers death or injury to passengers of a transport vehicle, except for free passengers in a goods vehicle. Even if the injured person or damaged property was not in a public place at the time, the insurer still pays if the accident happened in a public place. The Central Government sets a base premium and the insurer’s liability for such policies. A valid policy must be accompanied by a certificate with all required details. Policies issued before the 2019 amendment continue on their original terms. If a cover note is not followed by a full policy, the insurer must inform the registering authority within seven days, and the insurer must compensate the covered persons as promised.
Related questions
Can I appeal a motor vehicle claims tribunal award if I disagree?
Yes – you may appeal to the High Court within 90 days, but if you must pay you need to deposit up to Rs 25,000 (or half the award, whichever is less) and the dispute must be at least Rs 1 lakh.
Who can file a claim for compensation after a motor vehicle accident?
The injured person, the property owner, the deceased’s legal heirs, or an authorized agent can file a claim.
What penalty can I face if I drive against sections 3 or 4?
You may be jailed up to three months, fined up to ₹5,000, or both.
What must I do if police ask me for driver details of my vehicle?
You must give the police the driver’s name, address and licence information that you have or can reasonably discover.
Not legal advice. This is general legal information, not legal advice. Laws change and every case turns on its own facts — speak to a lawyer about your situation.