66. Insurance to cover.— No mechanically propelled vessel shall be used for voyage in inland
waters, unless there is in force—
(a) a policy of insurance which shall cover liability that may be incurred by the insured—
(i) in respect of the death of or bodily injury to any person or damage to any property caused
by or arising out of the use of the mechanically propelled vessel;
(ii) in respect of liability of operational pollution and accidental pollution of inland waters;
(b) a policy of insurance in compliance of the Public Liability Insurance Act, 1991 (6 of 1991), if
the mechanically propelled inland vessel is carrying or meant to carry, dangerous or hazardous goods;
(c) a policy of insurance covering the mechanically propelled vessel to—
(i) a value not less than the liability incurred; or
(ii) entitle it to be covered under limitation of liability as provided under this Act, a value not
less than the specified and applicable limitation amount:
Provided that any policy of insurance issued with a value not less than the limitation of liability in
force, immediately before the commencement of this Act, shall continue to be effective for a period
of twelve months after such commencement or till the date of expiry of such policy, whichever is
earlier.
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67. Contractual liability not to cover.— Notwithstanding anything contained in this Chapter, a
policy shall not be required to cover any contractual liability of the insured that arises due to any
performance or non-performance of a contract or of agreement in the capacity of a service provider.
68. Issuance and terms of insurance policy.— (1) For the purposes of section 66, the policy of
insurance issued shall be a policy, which—
(a) is issued by an authorised insurer;
(b) insures the mechanically propelled inland vessel, any person or any classes of persons
specified in the policy to the extent specified in section 66; and
(c) is a certificate of insurance issued by the insurer to the insured in such form and content, and
subject to such conditions as may be prescribed by the Central Government.
(2) The terms and conditions to be incorporated in the contract of insurance entered between insurer
and insured to cover the risks as provided in section 66 shall be such as may be prescribed by the Central
Government.
69. Duty to indemnify and direct action against insurer.— (1) Notwithstanding anything contained
in any law for the time being in force, an insurer issuing a policy of insurance under this section shall be
liable to indemnify the insured or any person, as specified in the policy in respect of any liability which
the policy purports to cover in the case of the insured or that person.
(2) Any claim for compensation against the loss or damage under this Act and covered by the
insurance may be brought directly against the insurer in respect of the liability incurred by the registered
owner.
70. Effect of death on certain causes of action.—Notwithstanding anything contained in section
306 of the Indian Succession Act, 1925 (39 of 1925), the death of a person in whose favour a certificate of
insurance had been issued, if it occurs after the happening of an event which has given rise to a claim
under the provisions of this Chapter, shall not be a bar to the survival of any cause of action arising out of
the said event against his estate or against the insurer.
71. Effect of certificate of insurance.—When an insurer has issued a certificate of insurance in
respect of a contract of insurance between the insurer and the insured person, then,—
(a) if and so long as the policy described in the certificate has not been issued by the insurer to the
insured, the insurer shall, as between himself and any other person except the insured, be deemed to
have issued to the insured person a policy of insurance conforming in all respects with the description
and particulars stated in such certificate; and
(b) if the insurer has issued to the insured the policy described in the certificate, but the actual
terms of the policy are less favourable to the person claiming under or by virtue of the policy against
the insurer either directly or through the insured than the particulars of the policy as stated in the
certificate, the policy shall, as between the insurer and any other person except the insured, be
deemed to be in terms conforming in all respects with the particulars stated in the said certificate.
72. Transfer of certificate of insurance.—Where a person in whose favour the certificate of
insurance has been issued in accordance with the provisions of this Chapter transfers to another person,
the ownership of the mechanically propelled vessel covered under this Chapter, in respect of which such
insurance was taken together with the policy of insurance relating thereto, the certificate of insurance and
the policy described in the certificate shall be deemed to have been transferred in favour of the person to
whom the mechanically propelled inland vessel is transferred with effect from the date of its transfer.
Explanation.—For the removal of doubts, it is hereby clarified that such deemed transfer shall include
transfer of rights and liabilities covered under the said certificate of insurance and the policy of insurance.
73. Powers of Central Government to make rules for Chapter XII.—The Central Government
shall, by rules made in this behalf, specify the terms, conditions and procedures to be complied with by
the insurers and insured including—
(a) cover note of insurance and its validity;
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(b) rights and duties of the insured;
(c) procedures and processes involved in processing of claims;
(d) duties and obligations of the insurers to satisfy the judgments and awards;
(e) rights of claimants, liability of the insured and the insurers in special circumstances such as
the insured becomes insolvent and the procedures to be followed;
(f) procedures, processes and minimum terms of conditions for the settlement between the
insurers and insured persons;
(g) procedures to be followed in the transfer of certificate of insurance; and
(h) such other matters directly or indirectly related to insurance of mechanically propelled
vessels, for the purposes of effective implementation and administration of this Chapter.