Requirement To Intimate Transfer Of Vehicle To Insurance Company u/s 157(2) MV Act Only Directory

Last updated: 07 November 2022
Quick Summary
The Kerala High Court has ruled that the requirement to inform an insurance company about a vehicle transfer within 14 days, as per Section 157(2) of the Motor Vehicles Act, is directory and not mandatory. This means that failure to provide this notification does not automatically absolve the insurance company of liability for accidents occurring after the transfer. The court clarified that this 'deemed transfer' of the policy applies to claims adjudicated by the Motor Accidents Claims Tribunal, including those for pillion riders, aligning with the Act's welfare objectives.

Court :
Kerala High Court

Brief :
THE KERALA HIGH COURT held that the stipulation under Section 157(2) of the Motor Vehicles Act, 1988 to intimate about the transfer of a vehicle to the Insurance Company within a period of 14 days of such transfer is only directory in nature, and not mandatory.

Citation :
2022 LiveLaw (Ker) 555

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