Insurance is a contract whereby one party agrees to compensate the loss or discharge the liability of another person. And in case of motor insurance in India, this also includes the loss suffered by third person. Motor insurance and all third-part...

Insurance is a contract whereby one party agrees to compensate the loss or discharge the liability of another person. And in case of motor insurance in India, this also includes the loss suffered by third person. Motor insurance and all third-party rights and liabilities with respect to it are covered by Motor Vehicle Act 1988. It is a mandate, provided by legislature under section 146, to not to use any vehicle in public place without a valid third-party insurance. The Motor Vehicles (Amendment) Act, 2019 have wholly replaced Chapter XI of the Motor Vehicles Act, 1988 which dealt with insurance of motor vehicles against third party risks. The Central Motor Vehicles (Fifth Amendment) Rules, 2022 lay down a new procedure for expeditious investigation and adjudication of the Motor Accident Claims. The new Rules have revolutionized the motor accidents compensation jurisprudence.