SHORT ANSWER:
The Motor Vehicles Act of 1988 mandates that all vehicles must have a valid insurance policy.
DETAILS:
- Section 146 of the Act requires every vehicle owner to have insurance against third-party risks.
- The insurance must cover liabilities arising from accidents causing injury or death to third parties.
- The Act provides penalties for driving without insurance.
PUNISHMENT / IMPLICATIONS (if applicable):
- Fine and/or imprisonment for driving without valid insurance.
- Vehicle registration may be suspended.
SOURCE:
- Motor Vehicles Act, 1988
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