INTRODUCTION

We regard it as a privilege and great

opportunity to research on the topic liability

insurance with special reference to motor

vehicles act 1988. Researcher would like to

prepare a dissertation on the crucial topic.

It’s a cardinal principle of law that based

upon public policy that a person can’t indemnify

against his own wrongful acts. There is a species

of insurance which tends to indemnify the assured

against the consequence of his wrongful act, so

far as third person are concern and such

contracts. It is necessary to prove the

commission such act and further the assured is

responsible for such wrongful act.

The Hindu philosophy gives the axiomatic

truth “Yat bhavathi tat nasayathi” which means

that whatever is created will be destroyed. The

entire universe is created; as a thing created it

is but natural that it will be destroyed.

Creation is inevitably followed by destruction.

Destruction is a change to the worse to the

optimum; in that sense change is a natural course

and its occurrence involves the risk. Risk is

therefore inevitable in life. Business is a

course of life; so in life and business there lie

a variety of risks. Risk is closely connected

with ownership. The owners want to save

themselves from risk and from out of this desire;

the business of insurance is born. The aim of all

insurance is to protect the owner from a variety

of risks which he anticipates.1

The law of insurance has been a subject of

considerable public importance since its

beginning. A few new statuary enactments have

become added to the existing statuary material on

the subject. Such degree of legislative care

further demonstrates the public importance of the

subject. Apart from public importance, insurance

is an also subject that cares for the individual

and family interest. Insurance protect and is

capable of protecting the general public as well

as individual. Because of its public and

individual utility, insurance has by now become a

business of huge turn over.

1 K.S.N. Murthy, modern law of insurance in india

India is now a vast insurance market. The

segment of compulsory insurance which provides

social security to road users and to factory

workers in it presents a huge volume of business.

There does not exist complete liability upon the

insurer as well as insured through various terms

and conditions in a liability insurance they can

manipulate their position. The fundamental

function of insurance is to shift the loss

suffered by a sole individual to a willing and

capable professional risk-bearer in consideration

of comparatively small contribution called

premium. In this process the professional risk-

bearer collects some small rate of contribution

from a large number of people and if there is any

unfortunate person amongst them, the risk-bearer,

the insurer, relieves the sufferer from the

effects of the loss by paying the insurance

money. According to Maclean, “insurance is a

method of spreading over a large number of

persons a possible financial loss too serious to

be conveniently borne by an individual”.2

2 J.B. Maclean, Life insurance

NAME OF THE RESEARCH TOPIC

LIABILITY INSURANCE WITH

SPECIAL REFERENCE TO MOTOR

VEHICLES ACT 1988

RESEARCH QUESTIONS

1. What is liability insurance policy?

2. Is the insurance business cover the

risk by undertaking to indemnify the

insurance against damages?

3. What is the procedure and authority

for the settlement of claim under motor

vehicle act?

4. Concept of third party insurance

under motor vehicle act?

5. What are the rights and duties of

insurer under the policy?

6. What are the obligations put upon

the insured?

IMPORTANCE OF THE RESEARCH

Insurance becomes an indispensible for

protection against consequence of any chance

demolition of such qualified and trained life.

Insurance is meant to protect human beings

against uncertain events which may otherwise be

of some disadvantage to them. It’s an assurance

that a sum of the money will be paid to the

person insured if a particular event happens.

There is no denying the fact that growth of

industrialization is an adventure in which the

triumvirate namely, industry, credit and cover of

insurance make a sojourn in each other’s

companionship. Insurance thus reduces the fears

of reduces the fears of the future risk to the

individual insured and by capital formation it

helps the growth of industrialization,

accelerates production, lubricates the machinery

of production and distribution and improve the

economy of the nation. It mobilizes the

resources, accelerates and stabilizes growth and

help in the establishment of a welfare state.

AIM AND OBJECT OF THE RESEARCH

The aim of this research is to understand the

concept of liability insurance under insurance

law.

Furthermore, the researcher is attempting to

discuss the provision with special reference to

the Motor Vehicle Act 1988. The insurance sector

has a very vital role in nation’s economy. Apart

from providing security to its nationals, it also

plays an important role in capital mobilization.

The small amounts of premiums collected by the

insurance companies generate large pools of

capital that can be routed to the needy sectors

like infrastructure development etc. Thus, this

sector needs constant regulation and nurturing so

that their full potential is achieved in the

nation building.3

3 M N Srinivasan, Principles of Insurance Law

SCOPE OF RESEARCH

The scope of this research is to understand

the concept of liability insurance as well as the

motor accident with special reference to third

party insurance.

Road accident caused by speedy movements of

streaming vehicle is a common feature, entailing

claims and payments of compensation to

beneficiaries of persons loosing life or limbs in

the accidents.

Although, the Motor Vehicles Act 1988 has

replacing the earlier act of 1939 had been

enacted with a view to streamlining the various

aspects of the road transport. Opportunities has,

therefore been taken to consolidate and update a

Motor Vehicles Act.

REVIEW OF LITERATURE

1.Principle of Insurance Law

8th edition reprint 2009, Butterworth

Wadhwa, Nagpur

Mr. M. N. Srinivasan

This book has attempted to deal with

all aspects of insurance law.

2.Indian Constitutional Law(2010)(6th)

By M. P. Jain

Butterworth Wadhwa, Nagpur.

This book has succeeded in giving a

brief but clear explanation of main

characteristic of constitution.

3.Comparative constitution law (2008)

By Dr. D.D. Basu,

Butterworth Wadhned Nagpur.

In this book get important information

regarding case laws .which is most interlink

with the insurance policy.

4.Motor accident Compansation

By A.S. Bhatnagar

5th edition 2001

This book is content about the

compensation awarded for loss of or injury to

limb or any part of has been given. Latest

important case laws of S.C and H.C. have been

included.

5.Dr. Avtar Singh,M.N.Srinivasan

Principles of Insurance Law,

7th edition 2002

Nagpur wadhwa and co.

6.Landmark Judgments (2010)(2nd)

Universal Law Publishing Co. Pvt. Ltd.,

Delhi.

7.Recent Judgments (2011)(5th)

Universal Law Publishing Co. Pvt. Ltd.,

Delhi.

RESEARCH METHODOLOGY APPLIED

The researcher has used both a descriptive

and analytical method of writing in order to

understand the issues involved in this subject

better. Also the researcher has taken the help of

judicial decisions in reiterating her views on

the subject.

PRIMARY SOURCE OF DATA

1.Books

2.Journals,

3.Magazines

4.Committee/Commission Reports

5.Conference/ Seminar, Colloquium

Papers ,Materials

SECONDARY SOURCE OF DATA

1.Newspaper,

2.Autobiographies

3.Law reports

4.Digest of Cases

5.Online Resources

Research techniqueIt is Doctrinal Research. The researcher

is going to do research from books kept in

library and information available on

internet.

LIMITATIONS OF THE RESEARCH

Following are some limitations for the

research.

1. This research is depends upon the

financial conditions. Hence it is

limited to financial conditions.

2. Research study is limited to research

tools and techniques availability.

3. Time factor is another limitation on the

research.

4. The research is little bit difficult to

get relevant material.

5. The research topic having a various vast

aspect and which may create hurdles in

the way of research.

6. Due to the lack of development of this

field of insurance in India, the

researcher has been able to rely on case

laws on the point.

7. Motor accident has various aspect unable

to find all that.

CHAPTER I

INTRODUCTION

1.1 General

Every person is exposing to various risks to

his or her person and interest, not just for the

cradle but for the time of his or her conception

itself.4 If the person is engaged in business, he

or she to struggle against many more risks. These

hazards, many of the nature’s own doings more

arising out of his or her economic activities are

inevitable of life and have to be overcome.

Insurance means a promise of compensation for

any potential future losses. It facilitates

financial protection against by reimbursing

losses during crisis. There are different

insurance companies that offer wide range of

insurance and an insurance purchaser can select

as per own convenience and preference. Several

insurances provide comprehensive coverage with

affordable premiums. Premiums are periodical

4 M. N. Srinivasn,

payment and different insurers offer diverse

premium options.

1.2 Nature and scope of Insurance

All the universe is created as a thing

created it is but natural that it will destroy.

Creation is inevitable followed by destruction.

Destruction is a change to the worse to the

optimum. The aim of all insurance is to protect

the owner from a variety of risks, which he

anticipates. The nature of insurance is depends

on the nature of the risks sought to be

protected. Insurance is mean to protect men

against uncertain events which may otherwise be

of some disadvantage to them.5

An element of uncertainty must be present in

the course of the happing of the event insured

against; in the same cases, in almost all life

insurance contracts, the happing of the event

itself is uncertain while in life insurance the

event insured, that is the death of an individual

is certain event, but the uncertainty lies in the

time when it happens. Fundamental functioning of

5 Lucena v Craufurd (1806) 2 Bos and PNR 269; 127 ER 42(HL), per Lawrence J.

the insurance is to shift the loss suffered by a

sole individual to a willing and capable

professional risk bearer in consideration of the

comparatively small contribution call premium.

1.3 Nature of insurance contract

Contract of insurance is basically governed

by rules, which form part of general law of

contract. In contract of insurance, one party

agrees to indemnify losses that would be

sustained by another the first party is bound to

pay money or provide its equivalent if any

uncertain event occurs. The other party namely

insured must have an insurable interest in the

property liability and liberty, which is subject

of insurance the absence of the required

relationship will render contract illegal, void

or simply unenforceable, depending on type of

insurance.6

1.4 Essential of contract of insurance

1. Definition of risk

2. Duration of risk

3. Premium of insurance

6 Swaminathan v Jaylaxmi Amma, 1987 (2) KLT 292

4. Amount of insurance

1.5 Important Definition

1.5.1 Court

“Court” means the principal of civil court of

original jurisdiction in district and includes

the High Court in exercise of its ordinary civil

jurisdiction

1.5.2 Insurance Company

“Insurance Company” means any insurer being a

company, association or partnership which may be

would up under the relevant provision of the

Companies Act 1956. To be referred to.

1.5.3 General insurance business

“General insurance business” means fire,

marine or miscellaneous insurance business,

whether carried on singly or in combination with

one or more of them.

1.6 Object and purpose of insurance

It serves the social purpose. It is “a

social device whereby uncertain risks of

individuals may be combined in a group and thus

made more certain; small periodic contribution by

the individual providing a fund out of which

those who suffer losses may be reimbursed. This

institution of insurance serves two fold purpose,

the immediate, short range and proximate purpose

and the far sighted long range and remote

purpose. The immigrate and direct purpose is to

protect the individual assured from any loss or

damage to his life or property by distrusting

loss among a large number of persons through the

media of professional risk bearers, the insurers,

thus serving also the sociological purpose far

sighted and long range purpose is to accelerate

the economic rate of the nation. The insurers

collect the savings of the numerous policies –

holders and thus funds are invested in organized

commerce and industry.

1.7 Classification of insurance

Contract of insurance have been classified

into various categories by different writers and

with the progress and development of civilization

and economic growth new varieties of insurance

are emerging.

1.7.1 According to the nature of insurance

affected

i) personal insurance

ii) property insurance

iii)liability insurance

1.7.2 According to the nature of the event

i) life insurance

ii) fire insusance

iii)marine insurance

iv) miscellaneous insurance

a) social liability/liability

insurance

b) industrial insurance

c) motor Vehicle insurance

d) aviation insurance7

7 K.S.N.Murthy Modern Law of Insurance in India

CHAPTER II

HISTORY BACKGROUND 2.1 INTRODUCTION

Indian insurance is a flourishing industry,

with several national and international players

competing and growing at rapid rates. Thanks to

reforms and the easing of policy regulating, the

Indian insurance sector been allowed to

flourishing, and as Indians become more familiar

with different insurance products, this growth

can only increase, with the period from 2010-2015

projected to be the ‘Golden Age’ for the Indian

insurance Industry.

2.1.1 Ancient

Insurance has a deep-rooted history in India

since ancient times and has been mentioned in the

writings of Manu (Manusmrithi), Yagnavalkya

(Dharmasastra) and Kautilya’s Arthashastra that glorified

ancient India. In all these ancient texts, the

writings discuss about pooling of resources that

would be re-distributed in times of calamities or

unforeseen circumstances such as epidemics,

earthquakes, fire, floods and famine. Such

writings depict that it was probably a pre-cursor

to modern day insurance.

2.1.2 Medieval

In 1818 the advent of life insurance business

descended in India with the establishment of the

Oriental Life Insurance Company at Kolkata.

However, this company failed in 1834 as it failed

to realize its goals and achieve the desired

objectives. In 1829, the Madras Equitable had

begun transacting life insurance business in the

Madras Presidency. In 1870 the British Insurance

Act was enacted. Moreover, in the last three

decades of the nineteenth century, the Bombay

Mutual (1871), Oriental (1874) and Empire of

India (1897) commenced their operations in the

Bombay Presidency.8

2.1.3 MODERN

Insurance Amendment Act of 1950, the

Principal Agencies were abolished. However, due

to the presence of large number of insurance

companies across India, the intensity level of

cut-throat competition amongst such organizations

was pretty high. There were also allegations of

unfair trade practices being prevalent to a great8 Insurance concept and IRDA

extent. The Government of India, therefore,

decided to standardize and nationalize the

practice of insurance business.

An ordinance was issued on 19th January, 1956

for nationalization of the Life Insurance sector

in India and Life Insurance Corporation (LIC)

came into existence in the same year. The LIC

absorbed 154 Indian, 16 non-Indian insurers as

well as 75 provident societies—totally 245 Indian

and foreign insurers. The LIC had monopoly till

the late 90s when the Insurance sector was

reopened to the private sector.

2.2 History of insurance outside India

2.2.1 Ancient world

The first methods of transferring or

distributing risk were practiced by Chinese and

Babylonian traders as long ago as the 3rd and2nd

millennia BC, respectively. Chinese merchants

travelling treacherous river rapids would

redistribute their wares across many vessels to

limit the loss due to any single vessel's

capsizing. The Babylonians developed a system

which was recorded in the famous Code of

Hammurabi, c. 1750 BC, and practiced by early

Mediterranean sailing merchants. If a merchant

received a loan to fund his shipment, he would

pay the lender an additional sum in exchange for

the lender's guarantee to cancel the loan should

the shipment be stolen.

2.2.2 Medieval and Early Modern

In 12th Century, after the establishment of

Seljuk state in Anatolia, Seljuk Sultan Ghiyas

ad-Din Kaykhusraw , introduced a form of state

insurance which reimbursing the traders for their

loss from the state treasury, if they would be

robbed within the Seljuk territory.9

Insurance as we know it today can be traced

to the Great Fire of London, which in 1666

devoured 13,200 houses. In 1680, he established

England's first fire insurance company, "The Fire

Office," to insure brick and frame homes.

2.3 Modern Europe

2.3.1 German and British government programs

Germany built on a tradition of welfare

programs in Prussia and Saxony that began as9 unus Emre: spiritual experience and culture, 80s

early as in the 1840s. In the 1880s Chancellor

Otto Von Bismark introduced old age pensions,

accident insurance, medical care and unemployment

insurance that formed the basis of the modern

European welfare State. His paternalistic

programs won the support of German industry

because its goals were to win the support of the

working classes for the Empire and reduce the

outflow of immigrants to America, where wages

were higher but welfare did not exist.

After 1905, led by the Liberal Party, the

British introduced a system of social insurance

as well. It was greatly expanded after 1944. 10

10 Bentley B. Gilbert, British social policy, 1914-1939 (1970)

CHAPTER III

LAGAL PROSPECTIVE OF RESEARCH

3.1 CONSTITUTIONAL PROSPECTIVE

Preamble

Directions in Constitution of India regarding

Social security and Insurance

In the PREAMBLE of the Constitution of India

itself there is resolution to secure to all its

citizens:

JUSTICE   Social, Economic and Political;

EQUALITY of Status and Opportunity ; and to

promote among them all.

Further the matters relating to Social

Security are specifically mentioned in the List

III-Concurrent List in the Seventh Schedule and

in the Directive Principles of State Policy.

There are some other laws like The Motor

Vehicle Act 1988, The Public Liability Insurance

Act 1991 which are not social security laws but

some of the provisions there in nevertheless

serve the welfare of victims and their 

dependents in an unfortunate accident caused due

to motor accident/accident caused due to handling

of hazardous substances. In the private car and

two wheeler motor insurance policies also, the

compulsory provision of personal accident

insurance of owner/driver, has been kept to

mitigate to some extent misery of victims and

their dependents. 

Provisions in The Motor Vehicle Act 1988 

1. Under The Motor Vehicle Act 1988 Section

140 (2) The amount of compensation in case of

death of a person resulting from an accident

arising out of the use of motor vehicle is Rs.

50000 (Rs.Fifty Thousands) and in respect of

permanent disablement of a person it is Rs.25000

(Rs. Twenty Five Thousands).The final amount of

compensation is decided by Motor Accident Claims

Tribunal taking in to consideration the age,

income and dependency of/on victim. The motor

insurance policy covers these provisions. 

2. Under The Motor Vehicle Act 1988 Section

161 in case of hit and run motor accident where

the identity of motor vehicle cannot be

ascertained the amount of compensation in case of

death of a person resulting from an hit and run

motor accident  is Rs. 25000 (Rs. Twenty Five

Thousands) and in respect of grievous hurt of a

person it is Rs.12500 (Rs. Twelve Thousands and

Five Hundred ) 11

Art.226 Power of H.C. to issue certain writs11 www.indianinsuranceonline.com

G. Veerappa Pillai v Raman and Raman Ltd.12

Constitution of India, Art.226 - WRITS -

Scope of - Grant of permits under Motor Vehicles

Act.

Such writs as are referred to in Article 226

are obviously intended to enable the High Court

to issue them in grave cases where the

subordinate tribunals or bodies or officers act

wholly without jurisdiction, or in excess of it,

or in violation of the principles of natural

justice, or refuse to exercise a jurisdiction

vested in them, or there is an error apparent on

the face of the record, and such act, omission,

error, or excess has resulted in manifest

injustice.

Art 227

United India Insurance Company Ltd v Saroj

Art.227 writ maintainability of insurance

company admitted the accident and subsequently on

the basis of order passed by the magistrate

acquitting the accused sought amendment in its

12 AIR 1952 sc 192

written statement to dispute the accident

tribunal rejected application whether petition

under Art 227 against order of the tribunal is

maintainable.

Held-no; H.C .cannot substitute its powers of

superintendence with appellate power; policy of

legislation is to leave such type of orders tithe

appellate court.

Virendra kumar v motor Accidents claims

Tribunal,Bandikui and others13

13 2003 ACJ1322

3.2 LEGISLATIVE PROSPECTIVE

3.2.1 Indian Penal Code

Whenever any case of accident or negligence

came under the perview of M.V.Act then

automatically provision of I.P.C. come as a part

of the case. Section 279,304A which came with

section 134(b)of m.v.act Section 279- Rash

driving or riding on public way Whoever drives

any vehicle, or rides, on any public way in

manner so rash or negligent as to endanger human

life, or to be likely to cause hurt or injury to

any other person, shall be punished with

imprisonment of either description for a term

which may extend to six months, or with fine

which may extend to one thousand rupees, or with

both. 14 State v Santanam15 Dwarka Das v State of

Rajastan16

Section 337 and Section 338 of Indian Penal

Code

Section337 causing hurt by act endangering

life or personal safety of others.

14 Bare Acts

15 1998 CrLJ3045(Karn)

16 1997 CrLJ4602(Raj)

Section 338 causing grievous hurt by act

endangering life or personal safety of others.

Section 80 Accident in doing a lawful act

Bhupendrasingh A chudasama v state of Gujarat17

3.2.2 Workmen compensation Act,1923

Section 30(1)

United India Insurance company Ltd v

Sridhargadde basappa and another.18

In this case it was held that Yes; the

question goes to the very root of the claim.

3.2.3 Insurance Act, 1938

National insurance co. ltd v yellamma and

another 19

Section 64VB

Limitation Act, 1963

Art.44(b)-a suit for insurance claim filed

beyond 3 years, from the date of disclaimer,

would be barred by limitation.

17 AIR 1997 SC 3796

18 2003 ACJ 875

19 2008ACJ1906

Tamilnadu Electricity Board V National

Insurance Co.20

3.2.4 Indian contract Act, 1872

Section 25-Agreement without consideration

void unless it is in writing and registered, or

is a promise to compensate for something done, or

is a promise to pay a debt barred by limitation

law.

Section 54- effect of default as to the

promise which should be 1st performed, in contract

consisting of reciprocal promise.

Section 65-obligation of person who has

received advantage under void agreement or

contract that becomes void.

National Insurance co. ltd V seema Malhatra21

3.2.5 Law of tort

20 AIR2002 Mad 143

21 AIR 2001 SC1197S

No fault liability- Motor Vehicle Act

provides for giving compensation satin

immediately to the injured party and their

dependent on the basis of rule of no fault

liability.

Shivaji Dayanu Patil V Smt. Vatschalu Uttam

More22

3.3 JUDICIAL PROSPECTIVE

Section 2(28)M.V.Act

Motor vehicle include a trailer

Parshottambhai’s case23

Waryam Singh V Sukhdes Singh24

22 AIR 1991 SC 1769

23 1977ACJ441(Gujarat)

24 AIR1972 Raj165

CHAPTER IV

LIABILITY INSURANCE

4.1 INTRODUCTION

It’s a cardinal principle of law based upon

public policy that a person cannot be indemnified

against his own wrongful acts. There is a species

of insurance which tends to indemnify the assured

against the consequences of his wrongful act, so

far as third persons are concerned; and in such

contracts it is necessary to prove the commission

of such act and further the assured is

responsible for such wrongful act.

In the absence of such proof the liability of

the insurers does not arise. Such issues are

dealt with under the concept of liability

insurance under the laws of insurance.

4.1.1 Types of liability policy:

i) Public Liability insurance, e.g.

insurance in respect of liabilities

connected with particular buildings, motor

vehicles and machinery.

ii) Employer’s liability insurance.

4.1.2 Nature and extent of liability

insurance

The main purpose of the policy is to permit

the assured to recover for negligence; the

policy thus presumes that there will have been

some misconduct on the insured’s part. Thus, in

the absence of any express provisions

restricting the insurer’s liability, the

insured will be able to recover provided his

liability is not due to an intentional criminal

act on his part. However the mere fact of

criminality is not sufficient to prevent

recovery, and while it is against public

policy, the courts have often said that the

true beneficiary of a liability policy is a

third party victim, and have thus in certain

exceptional cases allowed the assured to

recover despite the criminal nature of his

conduct.

4.2 LIABILITIES AND DUTIES OF AN INSURER

All parties to a contract wish to lay down

the terms and conditions that would suit their

situation best and which would put them at an

advantage. There are basically two common form

conditions of relevance. First is the admissions

of liability and the conduct of proceedings,

which would be of concern to the insurer, and

secondly, the obligation of the insured to take

reasonable care and precaution.

Liability insurance provides cover against

depletion of the insured’s assets caused by his

liability in law to others. This contract between

the insurer and the insured benefits a third

party who has been affected by the acts of the

insured.

Though the concept of privities of contract

has always existed in law, yet in such

circumstances where if the parties are not made

liable to the third party, it would have no

further recourse and would be unjust.

CHAPTER V

MOTOR ACCIDENT: IMPORTANT PROVISION UNDER

MOTOR VEHICLE ACT, 1988

In many jurisdictions it is compulsory to

have vehicle insurance before using or keeping a

motor vehicle on public roads. Most jurisdictions

relate insurance to both the car and the driver;

however the degree of each varies greatly.

With the aim of better regulation of traffic

systems in cities, this Bill amends the existing

Motor Vehicles Act, 1988. Among other provisions,

it makes way for state governments to allow

recognized automobile associations to issue

driving certificates. It also lays down a higher

penalty structure for offences.

Accident-

An accident or mishap is an unforeseen and

unplanned event or circumstance, often with lack

of intention or necessity. It implies a generally

negative outcome which may have been avoided or

prevented had circumstances leading up to the

accident been recognized, and acted upon, prior

to its occurrence.

Provisions Relating to Motor Vehicle

i)Liability without fault in certain

cases

ii) Insurance of motor vehicles

against 3rd party risks

iii) Claim tribunals

CHAPTER VI

COMPARATIVE APPROACH

6.1 Australia

In South Austria, Third Party Personal

insurance from the Motor Accident commission is

included in the license registration fee for

people over 17. A similar scheme applies in

Western Australia.

In Victoria, Third Party Personal insurance

from the Transport Accident Commission is

similarly included, through a levy, in the

vehicle registration fee.

In New South Wales, Compulsory Third Party

Insurance (commonly known as CTP Insurance) is a

mandatory requirement and each individual car

must be insured or the vehicle will not be

considered legal. Therefore, a motorist cannot

drive the vehicle until it is insured. A 'Green

Slip,' another name by which CTP Insurance is

commonly known due to the color of the pages

which the form is printed on, must be obtained

through one of the five licensed insurers in New

South Wales. Suncor and Allianz both hold two

licenses to issue CTP Green slips - Suncor under

the GIO and AAMI licenses and Allianz under the

Allianz and CIC/Allianz licenses.

6.2 Canada

Several Canadian provinces provide a public

auto insurance system while in the rest of the

country insurance is provided privately. Basic

auto insurance is mandatory throughout Canada

with each province's government determining which

benefits are included as minimum required auto

insurance coverage and which benefits are options

available for those seeking additional coverage.

Accident benefits coverage is mandatory

everywhere except for Newfoundland and Labrador.

All provinces in Canada have some form of no-

fault insurance available to accident victims.

The difference from province to province is the

extent to which tort or no-fault is emphasized.

6.3 Germany

Since 1939, it has been compulsory to have

third party personal insurance before keeping a

motor vehicle in all federal states of Germany.

Besides, every vehicle owner is free to take out

a comprehensive insurance policy. All types of

car insurances are provided by several private

insurers. The amount of insurance contribution is

determined by several criteria, like the region,

the type of car or the personal way of driving.

6.4 United Kingdom

In 1930, the UK government introduced a law

that required every person who used a vehicle on

the road to have at least third party personal

injury insurance. Today, UK law is defined by the

Road Traffic Act 1988, which was last modified in

1991. The Act requires that motorists either be

insured, have a security, or have made a

specified deposit (£500,000 as of 1991) with the

Accountant General of the Supreme Court, against

their liability for injuries to others (including

passengers) and for damage to other persons'

property, resulting from use of a vehicle on a

public road or in other public places.

CHAPTER VII

INTERPRETATION OF FINDING OF RESEARCH

CHAPTER VIII

CONCLUSION AND SUGGESTION

BIBLIOGRAPHY

1. Dr. Avtar Singh,M.N.Srinivasan Principles

of Insurance Law, 7th edition 2002

2. Motor accident Compensation, By A.S.

Bhatnagar

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i) www.wisegeek.com

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iv) en.wikipedia.org/wiki/

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v) http://www.civilserviceindia.com/

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vi) www.infidels.org/

vii) http://www.petitiononline.com

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ix) www.inlaw.com

x) www.truthindia.com/

xi) www.liberalsindia.com/

xii) aristotlethegeek.wordpress.com