In India, motor insurance is mandatory vide Section 146 MV Act, 1988.
Motor Vehicle Act is a benevolent legislation as far as compensation is payable towards third party liability.
It is generally understood that the person seeking insurance must have a legal right to insure the subject matter of insurance. Therefore, insurers insist on the Registration Certificate of the vehicle being in the name of the insured, at the time of availing cover.
In practice, subrogation has been modified by Knock for Knock agreement between insurers in case of liability arising out of physical damage to vehicles involved and respective insurers meet full liability of vehicles insured by them.
Section 146 is amended by Amendment Act 1994 to cast an additional duty that the owner of the vehicle carrying dangerous or hazardous goods shall also go in for a policy of insurance under the ?Public Liability Insurance Act, 1991.
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