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Directions: Read the following passage and answer the question.
Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.
Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.
  • a)
    Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.
  • b)
    Mundu should be compensated by the insurance company as accident occurred due to the vehicle.
  • c)
    Mundu should be compensated by his employer as it is his employer's duty to look after his labour.
  • d)
    Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Directions: Read the following passage and answer the question.Insura...
This has been made amply clear by section 146(1) of the motor vehicles Act, 1988, that third party insurance will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective.
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Directions: Read the following passage and answer the question.Insura...
Understanding the Scenario
The situation involves Mundu, who was loading heavy iron rods onto a lorry. The lorry was stationary but suddenly jolted due to the ignition being turned on. This resulted in the rods piercing through Mundu's body, leading to his tragic death.
Legal Framework of Third Party Insurance
- Nature of Third Party Insurance: Under the Motor Vehicles Act, third party insurance is designed to protect individuals who are injured by the insured vehicle, regardless of whether the vehicle is stationary or in motion.
- Compulsory Coverage: The law mandates that all vehicles have third party insurance, which covers injuries inflicted on third parties by the vehicle, including pedestrians, passengers, and other individuals present at the scene.
Application to Mundu's Case
- Accident Circumstances: Although Mundu was outside the lorry when he was injured, the accident was still directly linked to the vehicle’s operation. The vehicle’s jolt, caused by the driver’s action, initiated the tragic sequence of events.
- Liability of Insurance: Since Mundu’s death was caused by an incident involving the lorry, he qualifies as a third party under the insurance policy. The insurance company is responsible for indemnifying against claims made by third parties injured by the insured vehicle.
Conclusion
Given these points, the correct answer is option 'B': Mundu should be compensated by the insurance company as the accident occurred due to the vehicle. The insurance policy covers such scenarios, ensuring that individuals like Mundu are protected, irrespective of their status as employees or their location relative to the vehicle at the time of the accident.
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Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. X was going towards his office and seeking to get a cab. A cab stopped by him. To X's surprise, his friend Y was driving the cab & already had a passenger Z who had to be dropped at the building adjacent to X's office. Y told X that he will drop him as he was already paid fare by Z. X sat on front seat next to Y. On the way Y got so entangled in talks with X that he overlooked the traffic light & jumped the red light resulting in a fatal collision with a bus. X, Y & Z died on the spot. Claim was made to the insurance company. Decide.

Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Singham was sitting in his car enjoying loud music, while it was parked in the parking-lot of a residential complex. A traffic-police officer was passing by & because of the loud music approached him & asked for the documents of the vehicle. Singham furnished all available documents. The officer found that the insurance of vehicle had expired a day-ago so Singham was issued a challan for the same. Singham challenged the challan in court. Will the challan be cancelled?

Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Shera, by way of sale gave his Range-Rover car along with all relevant documents including the insurance papers to Salman. Salman on second day of the purchase in drunken state crushed & killed slum-dwellers sleeping on footpath. Salman was asked to compensate the family members of the deceased. However, Salman initiated a suit against the insurance company to fulfill the claim as the vehicle was insured. Decide.

Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.[Extracted, with edits and revisions, from, International Journal of Legal Develpoments Insurance of Motor Vehicles against Third Party Risks - Written by Sonia Maan, thelawbrigade.]Q.Which law governs motor vehicle insurance in India, particularly with regard to compulsory third party insurance?

Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.[Extracted, with edits and revisions, from, International Journal of Legal Develpoments Insurance of Motor Vehicles against Third Party Risks - Written by Sonia Maan, thelawbrigade.]Q.What is the primary purpose of compulsory third party insurance for motor vehicles in India?

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Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer?
Question Description
Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the following passage and answer the question.Insurance is a contract between two persons, an insurer and insured; it is where one person indemnifies the other on payment of consideration which is the premium in the event of happening of uncertain events. There are many kinds of insurances and motor vehicles insurance is one of them and is governed by the Motor Vehicles Act 1939. Every vehicle plying on road has to have compulsory third party insurance so that the insurance company can indemnify the insured against the claims made by the injured person. This was done so that the injured person should not suffer in case the motorist fails to pay to the injured. Under such situations the insurer indemnifies the insured against his liability to third parties. It is known as third party insurance because the beneficiary in this insurance is someone other than the insured and insurer. The liability is fastened on the insurer, and it is unlimited liability in case death or bodily harm is suffered by the third party. Third party insurance is a compulsory insurance under a statute and no person shall use a motor vehicle, except as a passenger, in a public place unless unless there is a policy of insurance complying with the requirements of the MV Act. This has been made amply clear by section 146(1) of the motor vehicles Act, 1988. It will be applicable even when the vehicle is stationary and not moving. The use does not cease on vehicle being immobile or defective. The third party insurance should be from an authorized insurer who is carrying on motor insurance business in India. Third party insurance does not cover injuries to the insured himself but to the rest of the world who is injured by the insured. However, Gratuitous passengers too are not covered under third party insurance as that would render superfluous the intention of the legislature which has taken within its purview the owner of the goods or his authorized representative carried in the vehicle. Also, the persons traveling in a goods vehicle except owner of the goods or his authorised representative would not be covered by the compulsory third party insurance. Regarding transferability of third party insurance it was held in the year 1980 that motor vehicle insurance being a personal contract, the insured cannot transferred the benefits under the policy without the consent of the insurer, or unless there is a stipulation in the policy itself.Q. Mundu was loading heavy iron rods on a lorry which were cylindrical in shape and were having sword like tip on both ends. Meanwhile, the lorry driver to warm up the engine turned on the ignition, however the lorry being stationed in gear got a jolt due to the same, making enough turbulance that the rods drifted out from lorry. Mundu now was standing out of truck after loading all rods & rods pierced through his body, scrambling his head and puncturing his stomach. Mundu died on the spot. Decide.a)Lorry driver is responsible for Mundu's death and hence legal action should be brought against his negligence.b)Mundu should be compensated by the insurance company as accident occurred due to the vehicle.c)Mundu should be compensated by his employer as it is his employer's duty to look after his labour.d)Mundu can not be compensated either by employer or by the insurance company as Mundu completed his work and was out of the lorry.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.
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