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MVA 1988 (Amended 2019)ORIGINALChapter VII
Section 145
Definitions for Chapter VII
Insurance of Motor Vehicles Against Third-Party Risks
Fine: N/ACompoundable: N/AEndorsement: No
BARE ACT PROVISION
Legal Text
In this Chapter — (a) 'authorised insurer' means an insurer for the time being carrying on general insurance business in India under the Insurance Act, 1938, and any Government insurance fund authorised to do general insurance business under that Act; (b) 'certificate of insurance' means a certificate issued by an authorised insurer in pursuance of sub-section (3) of Section 147; (c) 'property' includes roads, bridges, culverts, causeways, trees, posts and mile-stones; (d) 'third party' includes the Government; (e) 'policy of insurance' includes a cover note.
Simplified Explanation
Section 145 defines the foundational terms for the insurance chapter — the engine room of the MVA for road accident compensation. The definition of 'third party' is critically important: it includes the Government, meaning accidents on government roads can generate claims against government-owned vehicles. 'Third party' means any person other than the parties to the insurance contract — so the insured vehicle owner is not a third party, but the injured pedestrian, passenger in another vehicle, or even a passenger in the insured vehicle (in certain circumstances) is a third party. 'Authorised insurer' means any IRDAI-licensed general insurance company — including public sector insurers (New India, United India, National Insurance, Oriental Insurance) and private sector insurers (Bajaj Allianz, HDFC ERGO, ICICI Lombard, etc.). The certificate of insurance (insurance certificate) is the proof of insurance that must be carried and produced under Section 130 — the policy document is the contract, but the certificate is the enforcement-facing proof.
Historical Context
The insurance framework in Chapter VII is the financial backbone of India's road accident compensation system. Without mandatory third-party insurance backed by authorised insurers, the compensation rights created by the MVA would be largely illusory for most accident victims.Critical Changes
IRDAI (Insurance Regulatory and Development Authority of India) now regulates authorised insurers.
Cover note accepted as policy of insurance — temporary coverage while full policy is issued.
Digital insurance certificates accepted since 2019 Amendment.
Practical Scenarios
"A pedestrian injured by a car — the pedestrian is a 'third party' for insurance purposes."
"An Ola passenger injured in an Ola car accident — passenger is a third party for the vehicle's insurance."
Common Queries
A third party is any person other than the two parties to the insurance contract (the vehicle owner/insured and the insurer). In practice, third parties are: pedestrians struck by the vehicle, occupants of other vehicles involved in accidents, and in some cases, passengers in the insured vehicle itself.
Yes — Section 145(e) specifically includes cover notes within the definition of 'policy of insurance'. A cover note provides immediate insurance coverage while the full policy is being processed.