Question

What is the purpose of the Motor Vehicles Act, 1988

Q: Answer-What is the purpose of the Motor Vehicles Act, 1988 with respect to insurance?

The Motor Vehicles Act, 1988 makes third-party liability insurance mandatory for all motor vehicles in India. Third-party insurance covers the policyholder against any liability arising from injuries or damages caused to a third-party in case of an accident. The insurance covers the liability of the policyholder towards third parties, but not the policyholders own damages. The purpose of the Act is to ensure that victims of road accidents are provided with adequate compensation and that the responsibility of the person causing the accident is established. Hence, option B is correct.

with respect to insurance?

A To regulate the functioning of insurance companies in India

B To make third-party liability insurance mandatory for all motor vehicles in India

C To provide financial assistance to accident victims

D To promote the growth of the insurance sector in India

E None of the above

Practice Next

More Financial Management Questions

A series is given with one term wrong. Select that wrong term from the given alternatives.

25, 27, 36, 51, 75, 110
An information is given, followed by two statements labelled I and II. Identify which of the statements is/are possible reason(s) behind the given infor...
If a mirror is placed on the shaded line, which of the following options is the correct image of the given shape?

Select the option that is related to the third number in the same way as the second number is related to the first number and the sixth number is relate...
Six numbers 1, 3, 5, 6, 7 and 8 are written on different faces of a dice. Two positions of this dice are shown in the figure. Which is the number on the...
Complete the given series by finding the missing term: ?, 1100, 990, 1089, 980.1, 1078.11
Heavier coins are costlier. Ram’s coin is heavier than Mohan’s and costlier than Ramesh’s. Naresh’s coin is costlier than Ram’s but lighter th...
In a certain code language, if 'CBVQ' is written as '652520' and 'FRJT' is written as '9211323', how will 'EHLP' be written in the same code language?
ZDEH is related to WFBJ in a certain way based on the English alphabetical order. In 5 the same way, EMOB is related to BOLD. To which of the following ...
In a certain code language, ‘PRINT’ is written as ‘96512’ and ‘FROM’ is written as ‘8603’. What will be the code for ‘PROMPT’ in tha...

What is the purpose of the Motor Vehicles Act, 1988

Solution