Compulsory Insurance Relevant Statutes

Ride a scooter out of a showroom in Kharghar without a valid insurance policy and a traffic constable can fine you on the spot, even though you may never cause an accident in your life. A chemical plant cannot even switch on its first reactor without a policy. Why does the law force people to buy insurance they hope never to use? This topic looks at the statutes that say so, what each requires, and how they protect the people who were never party to the policy.

In two minutes

Compulsory insurance is cover that a statute requires a person to hold so that victims and beneficiaries are assured of payment; the main Indian examples are third-party motor insurance (Motor Vehicles Act 1988, s.146), insurance for hazardous substances (Public Liability Insurance Act 1991, s.4), employees’ state insurance (Code on Social Security 2020, s.28) and insurance of gratuity liability (s.57).

The rest of this chapter

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