Section 95. _

(4) If the amount which an insurer becomes liable under this section `to` pay in respect of a liability incurred by a person insured by a policy exceeds the amount for which the insurer would apart from the provisions of thia section be liable under the policy in respect of that liability, the insurer shall be entitled to recover the excess from that person. (5) In this section the expressions " material fact" and " material particular " mean, respectively, a fact or particular of such a nature as to influence the judgment of a prudent insurer in determining whether he will take the risk and, if so, a t what premium and on what conditions, and the expression " liability covered by LCT `IV` hioh is `d` but 3id or 1 to in avoid .efit of on (1) ,ection effect- i pter a : incur j I olvent ; .t with ' B I 1 in the / 3 or `8 /` being/ Ir. of `4` lsinesh or df )f the .oatink ~ubjedt `j` he 1 ency `L` thqd OF 1939.1 `dIotor` Vehicles. Chapter, the deceased debtor's rights against the insdrcr in respect of that liability shall, notwithstanding anything to the contrary in any provision of law, be transferred to and vest in the person to whom the debt is owing. (3) Any condition in a policy ksued for the purposes of this Chapter purporting either directly or indirectly to avoid the policy or to alter the rights of the parties thereunder upon the happening to the insured person of any of the events specilied in clause (a) or clause (b) of sub-section (1) or upon the making of an order for the administration of the estate of a deceased debtor according to the law of insolvency shall be of no effect. 95. (1) In order to comply with the requirements of z;~33$,mt~ thii Chapter, a policy of insurance must be a policy which- thii Chapter, a policy of insurance must be a policy ;;ii$!O1 - (a) is issued by a person who is an authorised insurer, and - (b) insures the person or classes of person specified in the policy to the extent specitled in subsection (2) against any liability mhich may bo incurred by him or them in respect of the death bf or bodily injury lo any person cauecd by or arising out of the use of the vehicloin a public place : Provided ~ . < 7 1 `t.` I may be : requiri i in mbich ird 04 by :t of em:t of ;the IS bqing ~ntind or le of $he a cl&im lapted \to `L` limit of i ? E i i i 1 i 1 cov ncial t 1G9e `OF` 1939.1 `Alotor` Vehicles ,D (1. 6 (3) A Provincial Government may prescribe that a policy of insurance shall in order to comply with the requirements of this Chapter cover ally liability arising under the provisions of the Workmen's Compensation Act, 1923, in respect of the death of or bodily injury to any paid employee engaged in driving or otherlriso in att,endance on or being carried in a motor vehicle. YIII of `1023.` Act, 1923, in respect of the death of or bodily injury to (4) A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by +horn the policy is effected a certificate of insurance or a cover note in the prescribed form and containing the prescribed particulars of any conditions subject to which the policy is issued and of any other prescribed matters ; and different forms, particulars and matters may be prescribed in different cases. (5) Notwithstanding anything e1se:vhere contained in any law, a person issuing a policy of insurance under this section shall be liable to indemnify the person or classes of person specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of person. t `$6.` ( I ) If, after a certificate of insurance or a cover -,",","g%in- note has been issued under sub-section (4) of section (4) of section of section 95 gBggppBS - note has been issued under sub-section (4) of section (4) of section of section 95 in favour of the person by whom a policy has been f;zz i n effected, judgment in respect of any sbch liability as is g~tp,";~~ required to be covered by a policy under clause (b) of rlska. (4) Upon a transfer under sub-section (1) or subsection (2) the insurer shall be under the same liability to the third party as he would have been to the insured 'person, b u t - (a) if the liability of the insurer to the insured person exceeds the liability of the insured person t.0 the third party, nothing in this Chapter shall affect the rights of the insured person against the insurer in respect of the excess, and - (b) if the liability of the insurer to the insured person is less than the liability of the insured person to the third party, nothing in this Chapter shall affect the rights of the third party against the insured person in respect of the balance. 98. (1) No person against whom a claim is made in nuts to ghe lnformatlon respect of any liability referred to in clause (b) of sub- a0 to insuranm section (I) of section 95 shall on demand by or on behalf of the person making the claim refuse to state whether or not he was insured in respect of that liability by any policy issued under the provisions af this Chapter, or would have been so insured if the insurer had not avoided or cancelled the policy, nor shall he refuse, if he was or would have been so insured, to give such particulars with respect to that policy: as were opecified in the ccrtificnte of insurance issued in respoct thereof. `(Q) In` l a sub-section (1) of section 95 (being a liability covered by the terms of the policy) is obtained against any person insured by the policy, then, notwithstanding that the insurer maj7 be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment debtor, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments. (2) No `73` sub.: .e O/ I thie t $3 ct jDf kg, or :mit e the :ooda e the ition OF 1939.1 Motor vehicle^. `(ii)` a condition excludiog driving by a named person or persons or by any person who is not duly licensed, or by any person who has been disqualiiied for holding or obtaining a driving licence during the period of disqualification ; or (iii) a condition excluding liability for injury caused or contributed to by conditions of war, civil war, riot or civil'commotion ; or - (c) that the policy is void on the ground that it was obtained by the non-disclosure of a material fact or by a representation of fact which was false in some material particular. lvent or reditop dminisding to lding up winding or of a undern being ~entures , nprised of the , eceased official uidator, ,he prong that t i pany is svisions i r "nably! t aining: 1 vested ~forcih swan+ roid t* reunqer ~s afoiei man/ in reasbni LY B y e agai@t iject it0 tion Ion by this ,acts bf 99. (1) No settlemenl: made by an insurer in respect settlemenb between of any claim which might be made hy a third party in Illsure and respect of any liability of the nature referred to in ~~~~, clause (b) of sub-section (1) of section 95 shall be valid unless such third party is a party to the settlement. (2) Where a person who is insured under a policy issued for the purposes of this Chapter has become insolvent, or where, if such insured person is a company, a winding up order has been made or a resolution for a voluntary winding up has been passed with respect to the company, no agreement made between the insurer and the insured person after liability has been incurred to a third party and after the commencement of the insolvency or winding up, as the case may be, xior any waiver, assignment or other disposition made by or payment made to the insured person after the c0mmei:ncement aforesaid shall be effective to defeat the rights transferred to the third party under this Chapter, but those rights shall be the same as if no such agreement, waiver, assignment or disposition or payment has been made. (3) Where a cerhiticate of insurance or cover note has been issued under sub-section (4) of section 95 to the person by whom `a` policy has been effeoted, so muoh of the policy as purports to restrict the insurance of the persons insured thereby by reference to any conditions other than those in clause `(6)` of sub-section `(2)` shall, as respects such liabilities as are required to be covered by a policy under clause `(6)` of sub-section `(1)` of section 95, be of no effect : Provided that any sum paid by the insurer in or towards the discharge of any liability of any person whioh is covered by the policy by virtue only of this sub-section shall be recoverable by the insurer from thab person. `100. (1)` For the purposes of sections 97, 98 and 99, Sa*log a reference to '' liabilities to third parties " in relation `',zgC&O&,` g8 to a person insured under any policy of insurance shall and gg- not include 8. reference to any liability of that person in the capacity of insurer under some other policy of insurance. (2) The provisions of sections 57, 98 and 99 shall not apply where a company is wound up voluntarily merely for the purposes of reconstruction or of `an` amalgamation with another company. `101.` Where a certxcate of insurance has been issued Insolvenoy to the person by whom a policy has been effected, the [of insured ] persons not happening in relation to any person insured by the policy `to` IlablUt affeot of of any such event as is mentioned in sub-section (1) or cla~ms bg Insuredor sub-section (2) of section 97 shall, notwithstanding any- third partiea thing in this Chapter, not affect any liability of that person of the nature referred to in clause (b) of subsection ( I ) of section 95 ; but nothing in this section shall affect any rights against the insurer conferred under the provisions of sections 97, 98 and 99 on the person to whom the liability was incurred. `ACT IV` 3ec tion h of a xxxIx of 1026. c cover ling of le proxrvival event ate of :tween : certito the lihself ed, be rson a :spects @ ,tefi in pdlicy terms erdons `.ga./ns` t h ithe ic$ as c u l b rer i I be haf3 loever OF 1939.1 Motor Vehicles (2) Whoever fails to surrender a certificate of insurance or to make an affidavit, as the case may be, in accordance with the provisions of this section shall be *unishable with k e which may extend to Hteen rupees for every day that the offence continues subject to a maximum of five hundred rupees. `105.` Whenever a policy of insurance issued under the $ : & ~ ~ provisions of this Chapter is cancelled or suspended by the insurer who has issued the policy, the insurer shall cancellation or Buapenslon within seven days notify such cancellation or suspension Of the polloyo to the registering authority in whose records the registration of the vehicle covered by the policy of insurance is recorded or to such other authority as the Provincial Government may prescribe. `106. (1)` Any person driving a motor vehicle in any ~roauotionot certificate of public place shall on being so required by a police officer insurance. in uniform produce the certificate of insurance relating \ to the use of the vehicle : Provided that if the driver of a motor vehicle within seven days from the date on which the production of the certificate of insurance was so required produces the certificate at such police station as may have been specified by him st the time its production was required he shall not be liable to conviction under this subsection by reason only of failure to produce the cert5cate to the police officer. (2) If, where owing to the presence of a motor vehicle in a public place an accident occurs involving bodily injury to another person, the driver of the vehicle does not at the time produce the certificate of insurance to a police officer, he shall produce the certificate of insurance at the police station at which he makes the report required by section 89 : Provided that no person shall be liable to conviction under this sub-section by reason only of failure to pro. duce his certificate of insurance if within seven days from the occurrence of the accident he produces the certificate at such police station as may be specified by him to the police officer at the site of the accident or to the officer in charge of the police station at which he report. ed the accident. (3) The, 8 1 ~ ~ Motor Vehicles. [ `AOT IV` (3) The owner of a motor vQicle shall give such information as he may be required by or .on behalf of a police officer empowered in this behalf by the Provincial Government to give for the purpose of determining whether the vehicle was or was not being driven in contravention of section 94 and on any occasion when the driver was required undsr this section to produce his certscate of insurance. (4) In this section the expression " produce his certificate of insurance " means produce for examination the relevant certificat:: of insurance or such other evidence as may be prescribed that the vehicle was not being driven in contravention of section 94. ~$$$,","~$ `107.` A Provincial Government may make rules :';;","$? requiring the owner of any motor vehicle when applying E$ttfif'. whether by payment of a tax or otherwise for authority to use the vehicle in a public place to produce such evidefice as may be prescribed by those rules to the effeot that either- - (a) on the date when the authority to use the vehicle comes into operation there will be in force the necessary policy of insurance in relation to the use of the vehicle by the applicant or by other persons on his order or with his permission, or - (6) the vehicle is a vehicle tjo which section 94 does not apply. `108.` (1) A Provincial Government may, on the application of a co-operative society of public service vehicle owners registered or deemed to have been registered under the Co-operative societies Act, 1912, or under an Act of a Provincial Legislature governing the registration of Co-operative Societies and subject to the control of the Registrar of Co-operative Societies of the province, allow the society to transact the business of an insurer for the purposes of this Chapter as if the society were an authorised insurer, subject to the following conditions, namely :- wperative msnrance. - (a) the society shall establish and maintain a fund uf not less than twenty-five thousand rupees for the first fifty vehicles or fractional part thereof and 82 , IP QF 1939.1 h40t0~ Vehicleo. uch inforand pro rah for every additional vehicle in the )fa police possession of members of the society and the icial Govsaid fund shall be lodged in such custody as the ; whether Provincial Government may prescribe and ravention shall not be available for meeting claims or river was other expenses except in the event of the tificate of winding up of the society ; (b) the liability of the society shall be limited as 3 his certispecified in clause (b) of sub-section (2) of lation the section 95 ; vidence as (c) the society shall, if required by the Provincial ng driven Government, re-insure against claims above a prescribed amount ; ake rules (d) the provisions of this Chapter, in so far as they 1 applying authority . relate to the protection of third parties and to such evithe issue and production of certscates, shall the effect apply in respeot of any insurance effected by the society ; fe) an independent authority not associated with he vehicle the society shall be appointed by the Provinforce the cial Government to facilitate and assist in the ion to the settling of claims against the society ; : by other (f) the society shall operate on an insurance baais, iksion, or that `is` to say,n 94 does ( i ) it shall levy its premiums in respect of a period not exceeding twelve months, during the appliwhich period the insured shall be held cover - ce vehicle ed in respect of all accidents arising, subject registered to the limits of liability specXed in clause or under (b) of sub-section (2) of section 95 ; the regis- (ii) it shall charge premiums estimated to be 3 the consufficient, having regard to the risks, to meet ies of ths the capitalised value of all claims arising mess of an during the period of cover, together with an he society L adequate charge for expenses attaching to follomg the issue of policies and to the settlement claims arising thereunder ; ,in a fupd (g) the society shall furnish to the Superintendent rupees for of Insurance the returns required to be fur. rt thercbf nished by insurers under the provisions of the aqd 1 Motor Vehicles. Insurance Act, 1938, and the Superintendent IV w `l O B o` of Insurance may exercise in respect thereof any of the powers exercisable by him in respect of returns made to him under the said Act ; and (h) any provisions of law applicable to the winding up of authorised insurers shall be equally applicable to the society. (2) Except as provided in sub-section (I), the Insurance Act, 1938, shall not apply to any co-operative sooiety of public service vehicle owners allowed to transact the business of an insurer under this section. ance Act, 1938, shall not apply to any co-operative `IV` ox `1038,`