Where, in pursuance of an arrangement between India and any reciprocating country, the motor vehicle registered in the reciprocating country operates on any route or within any area common to the two countries and there is in force in relation to the use of the vehicle in the reciprocating country, a policy of insurance complying with the requirements of the law of insurance for the time being in force in that country, then, notwithstanding anything contained in section 147 but subject to any rules which may be made under section 164B such policy of insurance shall be effective throughout the route or area in respect of which the arrangement has been made, as if the policy of insurance had complied with the requirements of this Chapter.
Legal Commentary & Landmark Judgments: Section 148
Section 148 of the Motor Vehicles Act, 1988 recognizes the statutory validity and extraterritorial enforceability of motor insurance policies issued in reciprocating foreign countries for vehicles operating on common routes or territories within India, overriding Section 147.
When filing a claim involving a cross-border commercial vehicle (e.g. from Nepal or Bangladesh operating under SAARC or bilateral transit protocols), invoke Section 148. Implead both the foreign owner and the Indian National Guarantee Bureau or authorized domestic insurer designated under the reciprocal protocol to ensure immediate financial execution in the MACT.