Motor Vehicles Act, 1988
A State 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 146 does not apply. Corresponding Law. - Section 159 corresponds to section 107 of the Motor Vehicle Act, 1939. Objects and Reasons. - Clause 159 empowers the State Government to make rules to require production of certificate of insurance of a motor vehicle at the time of payment of taxes and in the case of transport vehicle to have a valid certificate of insurance before the vehicle is put on public road after obtaining a permit.