95. Requirements of policies and limits of liability.
In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which-
is issued by a person who is an authorised insurer 3[ or by a co- operative society allowed under section 108 to transact the business of an insurer], and
1[ insures the person or classes of persons specified in the policy to the extent specified in sub- section (2)-
against any liability which may be incurred by him in respect of the death of or bodily injury to any person or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place;
against the death of or bodily injury to any passenger of a public service vehicle caused by or, arising out of the use of the vehicle in a public place Provided that a policy shall not 2[ be required-
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 3[ other than a liability arising under the Workmen' s Compensation Act, 1923 , in 8 respect of the death of, or bodily injury to, any such employee-
engaged in driving the vehicle, or
if it is a public service vehicle, engaged as a conductor of the vehicle or in examining tickets on the vehicle, or
if it is a goods vehicle, being carried in the vehicle], or
except 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, 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 front the vehicle at the time of the occurrence of the event' out of which a claim arises, or
to cover any contractual liability. 4[ Explanation.- For the removal of doubts, it is hereby declared that the death of or bodily injury to any person or damage, to any
property of a third party shall be deemed to have been caused by or to have arisen out of, the use of a vehicle in a public place notwith- standing that the person who is dead or injured or the property which is damaged was not in a public place at the time of the accident, if the act or omission which led to the accident occurred in a public place.]
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:-
1[ where the vehicle is a goods vehicle, a limit of 4[ one lakh and fifty thousand rupees] in all, including the liabilities, if any, arising under the Workmen' s Compensation Act, 1923 , (8 of 1923 .) in respect of the death of, or bodily injury to, employees, (other than the driver), not exceeding six in number, being carried in the vehicle;]
3[ 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 fifty thousand rupees in all
4[ in respect of passengers, a limit of fifteen thousand rupees for each individual passenger;"]
save as provided in clause (d), where the vehicle is a vehicle of any other class, the amount of liability incurred;
irrespective of the class of the vehicle, a limit of rupees 5[ six thousand] in all in respect of damage to any pro- perty of a third party.] 1[
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 2[ in the prescribed form a containing the prescribed particulars of any, conditions subject which the policy is issued and of any other prescribed matters different forms, particulars and matters may be prescribed in different cases.
3[ Where a cover note issued by the insurer under the provisions of this Chapter or the rules made thereunder is not followed by a policy of insurance within the prescribed time, the insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify he fact to the registering authority in whose records the vehicle to which the cover note relates has been registered or to such other authority as the State Government may prescribe.]
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.