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THE MOTOR VEHICLES ACT, 1939
CONTENTS
CHAPTER VII
MOTOR VEHICLES TEMPORARILY
LEAVING OR VISITING PAKISTAN
92. Power of Federal Government to make rules
CHAPTER VIII
INSURANCE OF MOTOR VEHICLES
AGAINST THIRD PARTY RISKS
93. Definitions
94. Necessity for insurance against third party risk
95. Requirements of policies and limits of liability
96. Duty of insurers to satisfy judgments against persons insured in respect of third party
risks
97. Rights of third parties against insurers on insolvency of the insured
98. Duty to give information as to insurance
99. Settlement between insurers and insured persons
100. Saving in respect of sections 97, 98 and 99
101. Insolvency of insured persons not to affect liability of insured or claims by third parties
102. Effect of death on certain causes of action
Page 1 of 15
103. Effect of certificate of insurance
104. Duty to surrender certificate on cancellation of policy
105. Duty of insurer to notify registering authority cancellation or suspension of the policy
106. Production of certificate of insurance
107. Production of certificates of insurance on application for authority to use vehicle
108. Co-operative insurance
109. Duty to furnish particulars of vehicle involved in accident
110. Power to appoint persons to investigate and report on accidents
111. Power to make rules
CHAPTER IX
OFFENCES, PENALTIES AND PROCEDURE
125. Driving uninsured vehicle
Page 2 of 15
THE MOTOR VEHICLES ACT, 1939
1
ACT NO. IV OF 1939
[16th February, 1939]
An Act to consolidate and amend the law relating to motor vehicles.
WHEREAS it is expedient to consolidate and amend the law, relating to motor vehicles in
2
[Pakistan]; it is hereby enacted as follows: ⸻
[Chapters I to VI have been repealed in its application to the Province of West Pakistan by
the Provincial Motor Vehicles Ordinance, 1965 (XIX of 1965) section 122 and 14th Schedule.]
CHAPTER VII
MOTOR VEHICLES TEMPORARILY
LEAVING OR VISITING 2[PAKISTAN]
92. Power of Federal Government to make rules.—(1) The 3[Federal Government] may,
by notification in the official Gazette, make rules for all or any of the following purposes, namely:⸻
(a) the grant and authentication of traveling passes, certificates or authorisations
to persons temporarily taking motor vehicles out of 2[Pakistan] to any place
4
[outside Pakistan] or to persons temporarily proceeding out of 2[Pakistan] to
any place 4[outside Pakistan] and desiring to drive a motor vehicle during their
absence from 2[Pakistan];
(b) prescribing the conditions subject to which motor vehicles brought
temporarily into 2[Pakistan] from 4[outside Pakistan] by persons intending to
make a temporary stay in 1[Pakistan] may be possessed and used in
2
[Pakistan]; and
1
For Statement of Objects and Reasons, see Gazette of India , 1938, Pt. V, p. 114 ; for Report of the Select Committee, see ibid., p. 187. See
also the India Independence (Miscellaneous Transitional Provisions) Order, 1947 (G.G.O. 13 of 1947), Art. 3.
This Act has been applied to⸻
Baluchistan, see Notification No. 41-F., dated the 14th March, 1939, Gazette of India, 1939, Pt. I, p. 446, and Notification No. 126-F., dated
the 3rd July, 1939, Gazette of India, 1939, Pt. I, p. 1180;
Phulera in the Excluded Area of Upper Tanawal to the extent the Act is applicable in the N.W.F.P., subject to certain modifications, see
N.W.F.P. (Upper Tanawal) (Excluded Area) Laws Regulation, 1950; and extended to the Excluded Area of Upper Tanawal othe4r than
Phuera by the N.W.F.P. (Upper Tanawal) (Excluded Area) Laws Regulation, 1950 and declared to be in force in that area with effect from
the 1st June, 1951, see N.W.F.P. Gazette, Extraordinary, dated the 1st June, 1951;
Such of the Baluch Tribal Areas beyond the western border of Dera Ghazi Khan District of the Punjab, as are not included in the
Balochistan Tribal Areas, see Gazette of India, 1939, Pt. I, p. 1562; and
Province of West Pakistan by West Pakistan Ordinance 11 of 1963 (With effect from the 16th May, 1963)
The Act has been amended in its application to⸻
(i) Sind and Karachi, by the Motor Vehicles (Sind Amdt.) Act, 1948 (Sind Act 14 of 1948),
(ii) North-West Frontier Province by N.W.F.P. Act 8 of 1953, and
(iii) The Province of West Pakistan by West Pakistan Acts 19 of 1958, 31 and 36 of 1964 and West Pakistan Ordinance 35
of 1960, s.2 (with effect from the 31st December, 1960).
The Act has been extended to⸻
(i) the Leased Areas of Baluchistan, see the Leased Areas (Laws) Order, 1950 (G.G.O.3 of 1950), and also applied in the
Federated Areas of Baluchistan, see Gazette of India, 1937, Pt.I, p.1499;
(ii) the Baluchistan States Union by the Baluchistan States Union (Federal Laws) (Extension) Order, 1953 (G.G.O.4 of
1953), as amended ;
(iii) the Khairpur States, excluding sections 43 (4), 43A, 43B, 43C and 54 (2), by the Khairpur (Federal Laws) (Extension)
Order, 1953 (G.G.O.5 of 1953), as amended; and
(iv) the State of Bahawalpur, see the Bahawalpur (Extension of Federal Laws) Order, 1953 (G.G.O. 11 of 1953), as
amended.
The Act has been and shall be deemed to have been brought into force in Gwadur with effect form the 8 th September, 1958, by the Gwadur
(Application of Central Laws) Ordinance, 1960 (37 of 1960), s.2.
This Act has been repealed in its application to the Province of West Pakistan except Chapters VII, VIII and section 125 by the Provincial
Motor Vehicles Ordinance, 1965 (XIX of 1965), s.122 and 14th Schedule.
2
Subs. by the Central Las (Statute Reform) Ordinance, 1960 (21 of 1960), s.3 and 2nd Sch. (with effect from the 14th October, 1955).
3
Subs. by the Federal Adaptation of Laws Order, 1975 (F.A.O. No. 4 of 1975) , Art. 2 and Table.
4
Subs. by A.O., 1949.
Page 3 of 15
(c) prescribing the conditions subject to which persons entering 1[Pakistan] from
any place 2[outside Pakistan] for a temporary stay in 1[Pakistan] may drive
motor vehicles in 1[Pakistan].
(2) No rule made under this section shall operate to confer on any person any immunity in
any Province from the payment of any tax levied in that Province on motor vehicles or their users.
3
* * * * * * * *
(4) Nothing in this Act or in any rule made thereunder by a Provincial Government relating
to⸻
(a) the registration and identification of motor vehicles, or
(b) the requirements as to constructions, maintenance and equipment of motor
vehicles, or
(c) the licensing and the qualifications of drivers of motor vehicles;
shall apply to any motor vehicle to which or to any driver of a motor vehicle to whom any
rules made under clause (b) or clause (c) of sub-section (1) apply.
CHAPTER VIII
INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS
93. Definitions. In this Chapter⸻
4
[(a) “authorised insurer” means an insurer in whose case the requirements of the
Insurance Act, 1938 (VI of 1938). 5* * * with respect to the registration of
insurers are complied with and includes, where the business of insuring motor
vehicles against third party risks is carried on by the 5[Federal Government] or
a Provincial Government 5* * * such Government;]
(b) “certificate of insurance” means a certificate issued by an authorised insurer in
pursuance of sub-section (4) of section 95; and includes 6[a cover note
complying with such requirements as may be prescribed, and] where more
than one certificate has been issued in connection with a policy, or where a
copy of certificate has been issued, all those certificates or that copy, as the
case may be;
7
* * * * * * *
1
Subs. by the Central Law (Statute Reform) Ordinance, 1960 (21 of 1960), s.3 and 2nd Sch. (with effect from the 14th October, 1955).
2
Subs. by A.O., 1949.
3
Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (XXVII of 1981)., s.3 and Sch., II.)
4
Subs. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.2. (with effect from the 1st March, 1949).
5
Subs. Ordinance No. XXVIII of 1981.
6
Ins. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.2 (with effect from the 1st March, 1949).
7
Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s.3 and Sch.II., which was previously
amended by various enactments.
Page 4 of 15
94. Necessity for insurance against third party risk.—(1) No person shall use except as a
passenger or cause or allow any other person to use a motor vehicle in a public place, unless there is
in force in relation to use of the vehicle by that person or that other person, as the case may be, a
policy of insurance complying with the requirements of this Chapter.
Explanation.⸻A person driving a motor vehicle merely as a paid employee, while there is in
force in relation to the use of the vehicle no such policy as is required by this sub-section, shall
not be deemed to act in contravention of the sub-section unless he know or has reason to believe that
there is no such policy in force.
1
[(2) Subject to any prescribed conditions, sub-section (1) shall not apply to any vehicle
owned by any of the following authorities, namely:⸻
(i) the 2[Federal Government];
3
* * * * * * *
(iii) any Provincial Government;
4
* * * * * * *
(vi) any local authority in 5[Pakistan] exempted from the operation of sub-section
(1) by order of the 2[Federal Government] or of a Provincial Government;
6
* * * * * *
95. Requirements of policies and limits of liability.—(1) In order to comply with the
requirements of this Chapter, a policy of insurance must be a policy which⸻
(a) is issued by a person who is an authorised insurer 7[or by a co-operative
society allowed under section 108 to transact the business of an insurer], and
(b) insurers the person or classes of person specified in the policy to the extent
specified in sub-section (2) against any liability which may be incurred by him
or them in respect of the death of or bodily injury to any person caused by or
arising out of the use of the vehicle in a public place 7[in 5[Pakistan] 6* * *:
Provided that a policy shall not, 8* * *, be required⸻
1
Subs. by Act. XXVII of 1947, s.3. (with effect from the 1st March, 1949).
2
Subs. by the Federal Adaptation of Laws Order, 1975 (F.A.O. No. 4 of 1975) , Art. 2 and Table.
3
Omitted by A.O., 1949.
4
Omitted by Ordinance, 27 of 1981, s,.3 and Sch. II.
5
Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (XXI of 1960),s. 3 and 2nd Sch. (with effect from the 14th October, 1955).
6
Omitted by the Federal Laws (Revision and Declaration) Ordinance 1981 (XXVII of 1981), s.3 and Sch.II.
7
Ins. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.4 (with effect from the 1st March, 1949).
8
Omitted by Act 27 of 1947, s.4 (with effect from the 1st March, 1949).
Page 5 of 15
(i) to cover liability in respect of the death, arising out of and in the course of his
employment, of the employee of a person insured by the policy or in respect of
bodily injury sustained by such an employee arising out of and in the course of
his employment, 1[other than a liability arising under the Workmen’s
Compensation Act, 1923 (VIII of 1923), in respect of the death of, or bodily
injury to, any such employee⸻
(a) engaged in driving the vehicle, or
(b) if it be a public service vehicle, engaged as a conductor of the vehicle
or in examining tickets on the vehicle, or
(c) if it be a goods vehicle, being carried in the vehicle,] or
(ii) except where the vehicle is a vehicle in which passengers are carried for hire
or reward or by reason of or in pursuance of contract of employment, to cover
liability in respect of the death of or bodily injury to persons being carried in
or upon or entering or mounting or alighting from the vehicle at the time of the
occurrence of the event out of which a claim arises, or
(iii) to cover any contractual liability.
(2) Subject to the proviso to sub-section (1), a policy of insurance shall cover any liability
incurred in respect of any one accident up to the following limits, namely.__
2
[(a) where the vehicle is a goods vehicle, a limit of twenty thousand rupees in all,
the liabilities, if any, arising under the Workmen’s Compensation Act, 1923
(VIII of 1923), in respect of the death of, or bodily injury to, employees other
than the driver being carried in the vehicle being limited to six such
employees;]
(b) where the vehicle is a vehicle in which passengers are carried for hire or
reward or by reason of or in pursuance of a contract of employment, in
respect of persons other than passengers carried for hire or reward, a limit of
twenty thousand rupees; and in respect of passengers a limit of twenty
thousand rupees in all, and four thousand rupees in respect of an individual
passenger, if the vehicle is registered to carry not more than six passengers
excluding the driver or two thousand rupees in respect of an individual
passenger, if the vehicle is registered to carry more than six passengers
excluding the driver;
(c) where the vehicle is a vehicle of any other class the amount of the liability
incurred.
3
* * * * * *
1
Ins. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.4 (with effect from the 1st March, 1949).
2
Subs. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.4. (with effect from the 1st March, 1949).
3
Omitted, ibid.
Page 6 of 15
(4) A policy shall be of no effect for the purposes of this Chapter unless and until there is
issued by the insurer in favour of the person by whom the policy is effected a certificate of insurance
1
* * * in the prescribed form and containing the prescribed particulars of any conditions subject to
which the policy is issued and of any other prescribed matters; and different forms, particulars and
matters may be prescribed in different cases.
(5) Notwithstanding anything elsewhere contained in any law, a person issuing a policy of
insurance under this section shall be liable to indemnify the person or classes of person specified in
the policy in respect of any liability which the policy purports to cover in the case of that person or
those classes of person.
96. Duty of insurers to satisfy judgments against persons insured in respect of third
party risks.—(1) If, after a certificate of insurance 1* * * has been issued under sub-section (4) of
section 95 in favour of the person by whom a policy has been effected, judgment in respect of any
such liability as is required to be covered by a policy under clause (b) of sub-section (1) of section
95 (being a liability covered by the terms of the policy) is obtained against any person insured by the
policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided
or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person
entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if
he were the judgment-debtor, in respect of the liability, together with any amount payable in respect
of costs and any sum payable in respect on interest of that sum by virtue of any enactment relating to
interest on judgments.
(2) No sum shall be payable by an insurer under sub-section (1) in respect of any judgment
unless before or after the commencement of the proceedings in which the judgment is given the
insurer had notice through the Court of the bringing of the proceedings, or in respect of any
judgment so long as execution is stayed thereon pending an appeal; and an insurer to whom notice of
the bringing of any such proceedings is so given shall be entitled to be made a party thereto and to
defend the action on any of the following grounds, namely:⸻
(a) that the policy was cancelled by mutual consent or by virtue of any provision
contained therein before the accident giving rise to the liability, and that either
the certificate of insurance was surrounded to the insurer or that the person to
whom the certificate was issued has made an affidavit stating that the
certificate has been lost or destroyed, or that either before or not later than
fourteen days after the happening of the accident the insurer has commenced
proceedings for cancellation of the certificate after compliance with the
provisions of section 105; or
(b) that there has been a breach of a specified condition of the policy, being one of
the following conditions, namely:⸻
(i) a condition excluding the use of the vehicle⸻
(a) for hire or reward, where the vehicle is on the date of the
contract of insurance a vehicle not covered by a permit to ply
for hire or reward, or
(b) for organised racing and speed testing, or
1
Omitted by Act, 1947 (XXVII of 1947), ss.4 and 5. (with effect from the 1st March, 1949).
Page 7 of 15
(c) for a purpose not allowed by the permit under which the
vehicle is used, where the vehicle is a public service vehicle or
a goods vehicle, or
(d) without side-car being attached, where the vehicle is a motor
cycle; or
(ii) a condition excluding driving by a named person or persons or by any
person who is not duly licensed, or by any person who has been
disqualified for holding or obtaining a driving licence during the period
of disqualification; or
(iii) a condition excluding liability for injury caused or contributed to by
conditions of war, civil war, riot or civil commotion; or
(c) that the policy is void on the ground that it was obtained by the non-disclosure
of a material fact or by a representation of fact which was false in some
material particular.
1
[(2A) Where any such judgment as is referred to in sub-section (1) is a foreign judgment
and is, by virtue of the provisions of section 13 of the Code of Civil Procedure, 1908 (V of 1908),
conclusive as to any matter adjudicated upon by it, the insurer (being an insurer) registered under the
Insurance Act, 1938 (IV of 1938), shall be liable to the person entitled to the benefit of the decree in
the manner and to the extent specified in sub-section (1) as if the judgment were given by a Court in
Pakistan:]
Provided that no sum shall be payable by the insurance in respect of any such judgment
unless, before or after the commencement of the proceedings in which the judgment is given, the
insurer had notice through the Court in the reciprocating territory of the bringing of the proceedings
and the insurer to whom notice is so given is entitled under the corresponding law of the
reciprocating territory, to be made a party to the proceedings and to defend the action on grounds
similar to those specified in sub-section (2).]
(3) Where a certificate of insurance 2* * * has been issued under sub-section (4) of section
95 to the person by whom a policy has been effected, so much of the policy as purports to restrict the
insurance of the persons insured thereby by reference to any conditions other than those in clause (b)
of sub-section (2) shall, as respects such liabilities as are required to be covered by a policy under
clause (b) of sub-section (1) of section 95, be of no effect:
Provided that any sum paid by the insurer in or towards the discharge of any liability of any
person which is covered by the policy by virtue only of this sub-section shall be recoverable by the
insurer from that person.
(4) If the amount which an insurer becomes liable under this section to pay in respect of a
liability incurred by a person insured by a policy exceeds the amount for which the insurer would
apart from the provisions of this section be liable under the policy in respect of that liability, the
insurer shall be entitled to recover the excess from that person.
1
Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (XXVII of 1981), s.3 and Sch.II.
2
Omitted by the Motor Vehicle (Amdt.) Act, 1947 (XXVII of 1947), s.5 (with effect from the 1st March, 1949).
Page 8 of 15
(5) In this section the expressions “material fact” and “material particular” mean,
respectively, a fact or particular of such a nature as to influence the judgment of prudent insurer in
determining whether he will take the risk and, if so, at what premium and on what conditions, and
the expression “liability covered by the terms of the policy” means a liability which is covered by the
policy or which would be so covered but for the fact that the insurer is entitle to avoid or cancel or
has avoided or cancelled the policy.
(6) No insurer to whom the notice referred to in sub-section (2) 1[or sub-section (2A)] has
been given shall be entitled to avoid his liability to any person entitled to the benefit of any such
judgment as is referred to in sub-section (1) 1[or sub-section (2A)] otherwise than in the manner
provided for in sub-section (2) 2* * *.
97. Rights of third parties against insurers on insolvency of the insured.—(1) Where
under any contract of insurance effected in accordance with the provisions of this Chapter a person is
insured against liabilities which he may incur to third parties then—
(a) in the event of the person becoming insolvent or making a composition or
arrangement with his creditors, or
(b) where the insured person is a company, in the event of a winding up order
being made or a resolution for a voluntary winding up being passed with
respect to the company or of a receiver or manager of the company’s business
or undertaking being duly appointed, or of possession being taken by or on
behalf of the holders of any debentures secured by a floating charge of any
property comprised in or subject to the charge.
if, either before or after that event, any such liability is incurred by the insured person, his
rights against the insurer under the contract in respect of the liability shall, notwithstanding anything
to the contrary in any provision of law, be transferred to and vest in the third party to whom the
liability was so incurred.
(2) Where an order for the administration of the estate of a deceased debtor is made according
to the law of insolvency, then, if any debt provable in insolvency is owing by the deceased in respect
of a liability to a third party against which he was insured under a contract of insurance in
accordance with the provisions of this Chapter, the deceased debtor’s rights against the insurer in
respect of that liability shall, notwithstanding anything to the contrary in any provision of law, be
transferred to and vest in the person to whom the debt is owing.
(3) Any condition in a policy issued for the purposes of this Chapter purporting either directly
or indirectly to avoid the policy or to alter the rights of the parties thereunder upon the happening to
the insured person of any of the events specified in clause (a) or in clause (b) of sub-section (1) or
upon the making of an order for the administration of the estate of a deceased debtor according to the
law of insolvency shall be of no effect.
(4) Upon a transfer under sub-section (1) or sub-section (2) the insurer shall be under the
same liability to the third party as he would have been to the insured person, but—
1
Ins. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.5 (with effect from the 1st March, 1949).
2
Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (XXVII of 1981),s. 3 and Sch.II.
Page 9 of 15
(a) if the liability of the insurer to the insured person exceeds the liability of the
insured person to the third party, nothing in this Chapter shall affect the rights
of the insured person against the insurer in respect of the excess, and
(b) if the liability of the insurer to the insured person is less than the liability of
the insured person to the third party, nothing in this Chapter shall affect the
rights of the third party against the insured person in respect of the balance.
98. Duty to give information as to insurance.—(1) No person against whom a claim is
made in respect of any liability referred to in clause (b) of sub-section (1) of section 95 shall on
demand by or on behalf of the person making the claim refuse to state whether or not he was insured
in respect of that liability by any policy issued under provisions of this Chapter, or would have been
so insured if the insurer had not avoided or cancelled the policy, nor shall he refuse, if he was or
would have been so insured, to give such particulars with respect to that policy as were specified in
the certificate of insurance issued in respect thereof.
(2) In the event of any person becoming insolvent or making a composition or arrangement
with his creditors or in the event of an order being made for the administration of the estate of a
deceased person according to the law of insolvency, or in the event of a winding up order being
made or a resolution for a voluntary winding up being passed with respect to any company or of a
receiver or manager of the company’s business or undertaking being duly appointed or of possession
being taken by or on behalf of the holders of any debentures secured by a floating charge on any
property comprised in or subject to the charge, it shall be the duty of the insolvent debtor, personal
representative of the deceased debtors or company, as the case may be, or the official assignee or
receiver in insolvency, trustee, liquidator, receiver or manager or person in possession of the
property to give at the request of any person claiming that the insolvent debtor, deceased debtor or
company is under such liability to him as is covered by the provisions of this Chapter, such
information as may reasonably be required by him for the purpose of ascertaining whether any rights
have been transferred to and vested in him by section 97, and for the purpose of enforcing such
rights, if any; and any such contract of insurance as purports whether directly or indirectly to avoid
the contract or to alter the rights of the parties thereunder upon the giving of such information in the
events aforesaid, or otherwise to prohibit or prevent the giving thereof in the said events, shall be of
no effect.
(3) If, from the information given to any person in pursuance of sub-section (2) or otherwise,
he has reasonable ground for supposing that there have or may have been transferred to him under
this Chapter rights against any particular insurer, that insurer shall be subject to the same duty as is
imposed by the said sub-section on the persons therein mentioned.
(4) The duty to give the information imposed by this section shall include a duty to allow all
contracts of insurance, receipts for premiums, and other relevant documents in the possession or
power of the person on whom the duty is so imposed to be inspected and copies thereof to be taken.
99. Settlement between insurers and insured persons.—(1) No settlement made by an
insurer in respect of any claim which might be made by a third party in respect of any liability of the
nature referred to in clause (b) of sub-section (1) of section 95 shall be valid unless such third party
is a party to the settlement.
Page 10 of 15
(2) Where a person who is insured under a policy issued for the purposes of this Chapter has
become insolvent, or where, if such insured person is a company, a winding up order has been made
or a resolution for a voluntary winding up has been passed with respect to the company no
agreement made between the insurer and the insured person after liability has been incurred to a third
party and after the commencement of the insolvency or winding up, as the case may be, nor any
waiver, assignment or other disposition made by or payment made to the insured person after the
commencement aforesaid shall be effective to defeat the rights transferred to the third party under
this Chapter, but those rights shall be the same as if no such agreement, wavier, assignment or
disposition or payment has been made.
100. Saving in respect of sections 97, 98 and 99.— (1) For the purposes of sections 97, 98
and 99 a reference to “liabilities to third parties” in relation to a person insured under any policy of
insurance shall not include a reference to any liability of that person in the capacity of insurer under
some other policy of insurance.
(2) The provisions of sections 97, 98 and 99 shall not apply where a company is wound up
voluntarily merely for the purposes of reconstruction or of an amalgamation with another company.
101. Insolvency of insured persons not to affect liability of insured or claims by third
parties.—Where a certificate of insurance has been issued to the person by whom a policy has been
effected, the happening in relation to any person insured by the policy of any such event as is
mentioned in sub-section (1) or sub-section (2) of section 97 shall, notwithstanding anything in the
Chapter, not effect any liability of that person of the nature referred to in clause (b) of sub-section (1)
of section 95; but nothing in this section shall affect any rights against the insurer conferred under
the provisions of section 97, 98 and 99 on the person to whom the liability was incurred.
102. Effect of death on certain causes of action. Notwithstanding anything contained in
section 306 of the Succession Act, 1925 (XXXIX of 1925), the death of a person in whose favour a
certificate of insurance 1* * * had been issued, if it occurs after the happening of an event which has
given rise to a claim under the provisions of this Chapter, shall not be a bar to the survival of any
cause of action arising out of the said event against his estate or against the insurer.
103. Effect of certificate of insurance. When an insurer has issued a certificate of insurance
in respect of a contract of insurance between the insurer and the insured person, then –
(a) if and so long as the policy described in the certificate has not been issued by
the insurer to the insured, the insurer shall, as between himself and any other
person except the insured, be deemed to have issued to the insured person a
policy of insurance conforming in all respects with the description and
particulars stated in such certificate; and
(b) If the insurer has issued to the insured the policy described in the certificate,
but the actual terms of the policy are less favorable to persons claiming under
or by virtue of the policy against the insurer either directly or through the
insured than the particulars of the policy as stated in the certificate, the policy
shall, as between the insurer and any other person except the insured, be
deemed to be in terms conforming in all respects with the particulars stated in
the said certificate.
1
Omitted by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.6 (with effect from the 1st March, 1949).
Page 11 of 15
104. Duty to surrender certificate on cancellation of policy.— (1) Whenever the period of
cover under a policy of insurance issued under the provisions of this Chapter is terminated or
suspended by any means before its expiration by effluxion of time, the insured person shall within
seven days after such termination or suspension deliver to the insurer by whom the policy was issued
the latest certificate of insurance given by the insurer in respect of the said policy, or, if the said
certificate has been lost or destroyed, made an affidavit to that effect.
(2) Whoever fails to surrender a certificate of insurance or to make an affidavit, as the case
may be, in accordance with the provisions of this section shall be punishable with fine which may
extend to fifteen rupees for every day that the offence continues subject to a maximum of five
hundred rupees.
105. Duty of insurer to notify registering authority cancellation or suspension of the
policy. Whenever a policy of insurance issued under the provisions of this Chapter is cancelled or
suspended by the insurer who has issued the policy, the insurer shall within seven days notify such
cancellation or suspension to the registering authority in whose records the registration of the vehicle
covered by the policy of insurance is recorded or to such other authority as the Provincial
Government may prescribe.
106. Production of certificate of insurance.—(1) Any person driving a motor vehicle in any
public place shall on being so required by a police officer in uniform 1[authorised in this behalf by
the Provincial Government] produce the certificate of insurance relating to the use of the vehicle ;
2
* * * * * * *
(2) If, where owing to the presence of a motor vehicle in a public place an accident occurs
involving bodily injury to another persons, the driver of the vehicle does not at the time produce the
certificate of insurance to a police officer, he shall produce the certificate of insurance at the police
station at which he makes the report required by section 89:
2
* * * * * * *
3
[(2A) No person shall be liable to conviction under sub-section (1) or sub-section (2) by
reason only of the failure to produce the certificate of insurance if, within seven days from the date
on which its production was required under sub-section (1) or, as the case may be, from the date of
occurrence of the accident, he produces the certificate at such police station as may have been
specified by him to the police officer who required its production or, as the case may be, to the police
officer at the site of accident or to the officer in charge of the police station at which he reported the
accident:
Provided that, except to such extent and with such modifications as may be prescribed the
provisions of this sub-section shall not apply to the driver of a transport vehicle.]
(3) The owner of a motor vehicle shall give such information as he may be required by or on
behalf of a police officer empowered in this behalf by the provincial Government to give for the
purpose of determining whether the vehicle was or was not being driven in contravention of section
94 and on any occasion when the driver was required under this section to produce his certificate of
insurance.
1
Ins. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.7 (with effect from the 1st March, 1949).
2
Omitted, ibid. (with effect from the 1st March, 1949).
3
Ins. ibid. (with effect from the 1st March, 1949).
Page 12 of 15
(4) In this section the expression “produce his certificate of insurance” means produce for
examination the relevant certificate of insurance or such other evidence as may be prescribed that the
vehicle was not being driven in contravention of section 94.
107. Production of certificates of Insurance on application for authority to use vehicle.
A Provincial Government may make rules requiring the owner of any motor vehicle when applying
whether by payment of a tax or otherwise for authority to use the vehicle in a public place to produce
such evidence as may be prescribed by those rules to the effect that either—
(a) on the date when the authority to use the vehicle comes into operation there
will be in force the necessary policy of insurance in relation to the use of the
vehicle by the applicant or by other persons on his order or with his
permission, or
(b) the vehicle is a vehicle to which section 94 does not apply.
108. Co-operative Insurance.— (1) A Provincial Government may, on the application of a
co-operative society of 1[transport vehicle] owners registered or deemed to have been registered
under the Co-operative Societies Act, 1912 (II of 1912), or under an Act of a Provincial Legislature
governing the registration of Co-operative Societies and subject to the control of the Registrar of
Co-operative Societies of the Province, allow the society to transact the business of an insurer for
the purposes of this Chapter 2* * *, subject to the following conditions, namely:__
(a) the society shall establish and maintain a fund of not less than twenty-five
thousand rupees for the first fifty vehicles or fractional part thereof and pro
rata for every additional vehicle in the possession of members of 3[and insured
with,] the society and the said fund shall be lodged in such custody as the
Provincial Government may prescribe and shall not be available for meeting
claims or other expenses except in the event of the winding up of the society;
4
[(b) the insurance business of the society shall except to the extent permitted under
clause (cc) be limited to transport vehicles owned by its members, and its
liability shall be limited as specified in sub-section (2) of section 95;]
(c) the society shall, if required by the Provincial Government, re-insure against
claims above 5[such amount as may be specified by the Provincial
Government];
6
[(cc) the society may, if permitted by the Provincial Government and subject to
such conditions and limitations as may be imposed by it, accept reinsurances
from other societies allowed to transact the business of an insurer under this
section;]
(d) the provisions of this Chapter, in so far as they relate to the protection of third
parties and to the issue and production of certificates, shall apply in respect of
any insurance effected by the society;
1
Subs. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.8 (with effect from the 1st March, 1949).
2
Omitted ibid. (with effect from the 1st March, 1949).
3
Ins. ibid, (with effect from the 1st March, 1949).
4
Subs. ibid., (with effect from the 1st March, 1949).
5
Subs. ibid., (with effect from the 1st March, 1949).
6
Ins. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.8 (with effect from the 1st March, 1949).
Page 13 of 15
(e) an independent authority not associated with the society shall be appointed by
the Provincial Government to facilitate and assist in the settling of claims
against the society;
(f) the society shall operate on an insurance basis, that is to say,__
(i) it shall levy its premiums in respect of a period not exceeding twelve
months, during which period the insured shall be held covered in
respect of all accidents arising, subject to the limits of liability
specified in 1* * * sub-section (2) of section 95;
(ii) it shall charge premiums estimated to be sufficient, having regard to
the risks, to meet the capitalised value of all claims arising during the
period of cover, together with an adequate charge for expenses
attaching to the issue of policies and to the settlement of claims arising
thereunder;
(g) the society shall furnish to the 2[Controller] of Insurance the returns required
to be furnished by insurers under the provisions of the Insurance Act, 1938 (IV
of 1938), and the 2[Controller] of Insurance may exercise in respect thereof
any of the powers exercisable by him in respect of returns made to him under
the said Act; and
3
[(h) the society shall, in respect of any business transacted by it of the nature
referred to in clause (i) of the proviso to sub-section (1) of section 95, be
deemed to be an insurer within the meaning of sub-section (1) of section 10
and sub-section (6) of section 13 of the Insurance Act,1938 (IV of 1938)].
4
[(2) The provisions of the Insurance Act, 1938 (IV of 1938), relating to the winding up of
insurance companies shall, to the exclusion of any other law inconsistent therewith and subject to
such modifications as may be prescribed, apply to the winding up of a co-operative society allowed
to transact the business of an insurer under this section as if it were an insurance company; but save
as hereinbefore provided, the Insurance Act, 1938 (IV of 1938), shall not apply to such society.]
109. Duty to furnish particulars of vehicle involved in accident. A registering authority or
the officer in charge of a police station shall, if so required by a person who alleges that he is entitled
to claim compensation in respect of an accident arising out of the use of a motor vehicle, or if so
required by an insurer against whom a claim has been made in respect of any motor vehicle, furnish
to that person or to that insurer, as the case may be, on payment of prescribed fee any information at
the disposal of the said authority or the said police officer relating to the identification marks and
other particulars of the vehicle and the name and address of the person who was using the vehicle at
the time of the accident or was injured by it.
110. Power to appoint persons to investigate and report on accidents. A Provincial
Government may, by notification in the official Gazette, appoint a person or a body of persons to
investigate and report on accidents involving the death of or bodily injury to any person arising out
of the use of motor vehicles and the extent to which their claims to compensation have been satisfied
1
The words “clause (b) of omitted ibid.
2
Subs. by the Motor Vehicles (Amdt.) Act, 1953 (XIX of 1953),s.6. (with effect from the 15th May, 1950).
3
Subs. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.8 (with effect from the 1st March, 1949).
4
Subs. ibid. (with effect from the 1st March, 1949).
Page 14 of 15
and to advise and assist such persons or their representatives in presenting their claims for
compensation:
Provided that nothing in this section shall confer on any such person or body of persons the
right to adjudicate in any way on the liability of the insurer or on the amount of damages to be
awarded except at the express desires of the insurer concerned.
111. Power to make rules.— (1) The 1[Federal Government] may make rules for the purpose
of carrying into effect the provisions of this Chapter.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for—
(a) the forms to be used for the purposes of this Chapter;
(b) the making of applications for and the issue of certificates of insurance;
(c) the issue of duplicates to replace certificates of insurance 2[mutilated,
defaced,] lost or destroyed;
(d) the custody, production, cancellation and surrender of certificates of
insurance;
(e) the records to be maintained by insurers of policies of insurance issued under
this Chapter;
(f) the identification by certificates or otherwise of persons or vehicles exempted
from the provisions of this Chapter;
(g) the furnishing of information respecting policies of insurance by insurers;
(h) the carrying into effect of the provisions of section 108;
(i) adapting the provisions of this Chapter to vehicles brought into 3[Pakistan] by
persons making only a temporary stay therein by applying those provisions
with prescribed modifications; and
(j) any other matter which is to be or may be prescribed.
CHAPTER IX
OFFENCES, PENALTIES AND PROCEDURE
125. Driving uninsured vehicles. Whoever drives a motor vehicle or causes or allows a
motor vehicle to be driven in contravention of the provisions of section 94 shall be punishable with
imprisonment which may extend to three months, or with fine which may extend to five hundred
rupees, or with both.
[Chapters IX, X (except section 125) and Schedules I to XI have been repealed in its
application to the Province of West Pakistan by the Provincial Motor Vehicles Ordinance, 1965 (XIX
of 1965), section 122 and 14th Schedule.] Date: 11-11-2024
157439
1
Subs. by the Federal Adaptation of Laws Order, 1975 (F.A.O. No. IV of 1975) , Art. 2 and Table.
2
Ins. by the Motor Vehicles (Amdt.) Act, 1947 (XXVII of 1947), s.9 (with effect from the 1st March, 1949).
3
Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960), s.3 and 2 nd Sch. (with effect from the 14th October, 1955), for
“the Provinces and the Capital of the Federation” which had been subs. by A.O., 1949, for “British India”.
Page 15 of 15
Source: Pakistan Code, Ministry of Law and Justice (pakistancode.gov.pk). Text on this page is reproduced verbatim from the official PDF and is provided for reference only. For the authoritative version, always consult the source document or a current reported edition.
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