The Motor Vehicles Act was passed in the year 1988 and it deals with all the important aspects of a motor vehicle plying on our roads. Whether it is the vehicle’s registration, a valid license for driving the vehicle or a mandatory insurance on the vehicle, the Act contains all the necessary legal provisions in connection to every sort of vehicle. It is as per the provisions of the Act that a mandatory insurance cover is necessary on your vehicle whether you have a two wheeler or a four-wheeler and whether the vehicle is used for commercial purposes or for private use.
The Motor Vehicles Act 1988 mandates a Third Party Liability Only policy wherein any damage to the third party property or any bodily injury to any third party caused by your vehicle is covered. What it does not cover is you and your vehicle. So, if you hit any person or damage anyone’s car while driving, the third party insurance will pay for the damages faced by the injured person or property. Insurance companies sell both the mandatory Liability Only Cover as well as a Package Policy which will also provide for damages to your car and yourself.
Whatever be the form of cover you choose, you will get a Certificate of Insurance from your insurance company which details the policy bought and the validity of the policy.
Certificate of Insurance
As per Rule 141 of the Central Motor Vehicle Rules 1989, your insurer is mandated to issue a Certificate of Insurance in addition to your policy document when the policy is purchased or renewed. This document is issued in the format laid down in Form 51 prescribed under the Rules and contains the details of the insurance policy.
As the Certificate of Insurance is issued in Form 51, you should know what the form contains. Broadly, the form contains the below-mentioned details:
Policy Number and the certificate Number
Registration mark of the insured vehicle
Make and model of the vehicle
The policyholder’s name and address
Date and time of commencement of coverage
Date of expiry of the cover
Rules for qualified persons who can drive the vehicle without legal violations
Limitations of the policy in respect of usage of the vehicle
The last two points are important as they pose a legal requirement which should be fulfilled by the person driving the vehicle- whether the vehicle is used for commercial purpose or for private usage.
This Certificate is legally required and the insurance company is legally bound to issue it. Moreover, the Certificate is required to be kept in the vehicle at all times while the actual policy document should be preserved at your home or office. For any sort of police inspection, the Certificate of Insurance would be required along with other important documents like the Driving License and the PUC Certificate.
So, to sum up, the Certificate of Insurance is a document showing the details of your effective insurance cover on the vehicle and is issued by your insurance company as per the prevailing Motor Vehicles law.