law: The Motor Vehicles Act, 1988
  147. 
  
  Requirements of policies and limits of liability.
  Provided that 
  
  a policy shall not be required-
  
  
  Explanation.--For the  removal of  doubts, it  is hereby declared that the death 
  
  of or bodily injury to any person or damage to any property of a third party 
  
  shall be deemed to have been caused by or to have  arisen  out  of,  the  use  
  
  of  a  vehicle  in  a  public  place notwithstanding that the person who is dead 
  
  or injured or the property which is  damaged was  not in  a public  place  at  
  
  the  time  of  the accident, if the act or omission which led to the accident 
  
  occurred in a public place.
  Provided that  
  
  any policy  of insurance  issued with  any limited liability and  in force,  
  
  immediately before  the commencement of this Act, shall  continue to be 
  
  effective for a period of four months after such commencement  or till the date 
  
  of expiry of such policy whichever is earlier.