Other Statutes Affecting Insurance: Marine Insurance Act, Motor Vehicles Act, Consumer Protection Act
Marine Insurance Act, 1963
Codifies marine insurance (hull, cargo, freight) along the lines of the English Marine Insurance Act, 1906: insurable interest, utmost good faith, warranties, voyage and deviation, particular and general average, constructive total loss, abandonment, sue and labour and subrogation. It does not govern inland transit, which is general insurance under the Insurance Act.
Motor Vehicles Act, 1988 (as amended in 2019)
- Section 146: using an uninsured vehicle in a public place is an offence.
- Section 147: a policy must cover third-party liability; third-party bodily injury liability is unlimited.
- Section 149: the insurer must satisfy judgments against the insured.
- Sections 161 and 164: hit-and-run relief raised to ₹2 lakh (death) and ₹50,000 (grievous hurt).
- Section 166: Motor Accident Claims Tribunals - no pecuniary ceiling and no limitation period.
Consumer Protection Act, 2019
Insurance is a "service". Pecuniary limits: District up to ₹50 lakh, State ₹50 lakh to ₹2 crore, National above ₹2 crore. Limitation is two years; complaints may be filed electronically; product liability and unfair-contract provisions apply.
Worked example
A complainant seeks ₹80 lakh for wrongful repudiation of a fire policy. The District Commission is barred by its ₹50 lakh ceiling; the State Commission has jurisdiction over claims between ₹50 lakh and ₹2 crore.
Traps
- Using the pre-2019 limits (₹20 lakh / ₹1 crore).
- Applying the two-year consumer limitation to a Tribunal claim, which has none.
- Citing the Marine Insurance Act for inland transit losses.