The contribution condition needs to be specially worded in Private Car Policies to cover the owner of the motor vehicle, for third party liability while driving cars not belonging to him.
The loss or damage to the vehicle is indemnified only if it is proximately caused by any of the insured perils. The doctrine also applies to third party claims. The third party injury or damage must be proximately caused by the use of the vehicle, by or on the instructions of the insured, for which he is held legally liable to pay damages.
Motor Vehicle Act, 1939 made provision for various matters relating to: i. The use, maintenance and operation of motor vehicles, ii. Registration of motor vehicles, iii. Construction equipment and maintenance of motor vehicles, iv. Control of traffic, etc.
The Motor Vehicles Act, 1988 (Act No. 59 of 1988) is the outcome of all the recommendations proposed by various Committees. It has replaced the earlier 1939 Act and it became effective from 1st July, 1989.
Amendment Act 54 of 1994: The Act of 1988 was amended vide Amendment Act 54 of 1994 which consolidated and rationalised various laws regulating road transport.
MODELEXAM® 
www.realsoftinfoplan.com