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Section 145: Definitions

Motor Vehicles Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Act 1988
Section 144 All 217 Sections of Motor Vehicles Act Section 146

Legal Commentary & Landmark Judgments: Section 145

Section 145 of the Motor Vehicles Act, 1988 establishes foundational statutory definitions governing compulsory third-party motor insurance under Chapter XI, defining 'authorised insurer', 'certificate of insurance', 'hit and run accident', 'policy of insurance', 'property', and providing an expansive definition of 'third party'.

  • Authorised Insurer & Certificate of Insurance: Defines 'authorised insurer' as an entity registered under IRDAI Act, 1999 or Government insurance fund under Act 57 of 1972; defines 'certificate of insurance' as issued under Section 147(3) including a cover note complying with prescribed rules.
  • Expansive Statutory Definition of 'Third Party': Section 145(i) explicitly defines 'third party' to include the Government, the driver, and any other co-worker on a transport vehicle, dramatically expanding statutory coverage following the 2019 amendment.
  • Hit and Run & Property Definitions: Defines 'hit and run motor accident' where vehicle identity cannot be ascertained despite reasonable efforts; defines 'property' broadly to include roads, bridges, culverts, trees, milestones, passenger baggage, and goods.
Key Landmark Precedents:
  • National Insurance Co. Ltd. v. Balakrishnan (2013) 1 SCC 731: The Supreme Court held that there is a fundamental distinction between a statutory 'Act Only' policy (which covers third-party risks under Section 145/147) and a 'Comprehensive / Package Policy'; under a comprehensive package policy, the insurer is liable for death or bodily injury to occupants in a private car and pillion riders on a two-wheeler without payment of extra premium, pursuant to IRDA circulars.
  • New India Assurance Co. Ltd. v. Asha Rani (2003) 2 SCC 223: A 3-Judge Bench of the Supreme Court held that an insurer is not liable under Section 147 for death or injury to gratuitous passengers carried in a goods vehicle; the 1994 amendment covering the 'owner of goods or his authorized representative' does not encompass gratuitous passengers or unauthorized passengers in a goods carriage.
  • Oriental Insurance Co. Ltd. v. Sunita Rathi (1998) 1 SCC 365: The Supreme Court held that the liability of the insurer arises strictly from the effective date and time of the insurance contract under Section 145(b); where a cover note is issued after the occurrence of an accident on the same day, the policy does not operate retrospectively to cover an accident that occurred prior to the issuance of the cover note.
  • United India Insurance Co. Ltd. v. Tilak Singh (2006) 4 SCC 404: The Supreme Court extended the principles of Asha Rani to two-wheelers, ruling that a statutory 'Act Only' policy does not cover the risk of death or bodily injury to a gratuitous pillion rider carried on a two-wheeler.
Courtroom Practice & Strategic Litigation Guidance:

In every motor accident claim, first categorize the policy using Balakrishnan: examine the policy schedule to determine whether it is an 'Act Only' policy or a 'Comprehensive / Package' policy. For post-2019 accidents, invoke amended Section 145(i) to defeat insurer objections regarding employed drivers and transport vehicle co-workers, who are now expressly defined as statutory third parties.

Section 144 All 217 Sections of Motor Vehicles Act Section 146