All motor policies contain a clause called ?Avoidance of certain terms and right of recovery.
The provisions relating to compulsory third party insurance do not apply to any vehicle owned by the Central Government or a State Government and used for Government purposes unconnected with any commercial enterprise.
Section 150 Motor Vehicles Act, 1988 provides for the rights of third parties in the event of the insolvency of the insured or in the event of winding up when the insured is a Company.
Section 155 of 1988 Act provides that if the insured person dies after incurring third party liability, then the cause of action survives against the insureds estate, or legal heirs or against the insurer.
Section 163 (A) contains special provision as to payment of compensation on ?structural formula basis.
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