Under section 157(1) of the Motor Vehicles Act, 1988, where the person in whose favour a certificate of…

Section 157(1) of the Motor Vehicles Act, 1988 deems the certificate of insurance and the policy described in it to have been transferred in favour of the transferee "with effect from the date of its transfer", and its Explanation clarifies that the deemed transfer includes the rights and liabilities under them. The policy is therefore not cancelled, does not wait for the insurer's endorsement and does not remain with the transferor; section 157(2) separately requires the transferee to apply to the insurer in the prescribed form for the necessary changes in the certificate and the policy. (Formerly, s.159(a) required evidence that a policy would be in force when the authority to use the vehicle came into operation.)