Motor Vehicles Act, 1988
(1) Where a person in whose favour the certificate of insurance has been issued in accordance with the provisions of this Chapter transfer to another person the ownership of the another vehicle in respect of which such insurance was taken together with the policy of insurance relating thereto, the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer. 92[Explanation. - For the removal of doubts, it is hereby declared that such deemed transfer shall include transfer of rights and liabilities of the said certificate of insurance and policy of insurance.] (2) The transferee shall apply within fourteen days from the date of transfer in the prescribed form to the insurer for making necessary changes in regard to the fact of transfer in the certificate of insurance and the policy described in the certificate in his favour and the insurer shall make the necessary changes in the certificate and the policy of insurance in regard to the transfer of insurance. Corresponding Law. - Section 157 corresponds to section 103-A of the Motor Vehicles Act, 1939. Objects and Reasons. - Clause 157 lays down that when the certificate of registration is transferred from one person to another, then the policy of insurance in respect of that vehicle is also deemed to have been transferred to that other person from the date on which the ownership of the motor vehicle stands transferred.