Validity of policies of insurance issued in reciprocating countries
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Summary
When India has an arrangement with a reciprocating country and a vehicle registered in that country operates on a route or area common to both, an insurance policy that meets that country’s insurance law will be treated as effective across that route or area as if it complied with this Chapter. This applies despite section 147 and is subject to any rules made under section 164.
Example
Priya drives a delivery van registered in a reciprocating country along a cross-border route shared with India. Her insurance meets that foreign country's legal requirements but not India’s technical form. Under this rule the policy is treated as valid for that shared route as if it met this Chapter, subject to rules under section 164.
Bare Act
Enacted textWhere, in pursuance of an arrangement between India and any reciprocating country, the motor vehicle registered in the reciprocating country operates on any route or within any area common to the two countries and there is in force in relation to the use of the vehicle in the reciprocating country, a policy of insurance complying with the requirements of the law of insurance in force in that country, then, notwithstanding anything contained in section 147 but subject to any rules which may be made under section 164, such policy of insurance shall be effective throughout the route or area in respect of which, the arrangement has been made, as if the policy of insurance had complied with the requirements of this Chapter.
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