law: The Motor Vehicles Act, 1988
  154. 
  
  Insolvency of insured persons not to affect liability of insured or claims by 
  
  third parties.
  Where a 
  
  certificate of insurance has been issued to the person by whom a policy has been 
  
  effected, the happening in  
  
  relation to any person insured by the policy of any such event as is mentioned 
  
  in sub-section (1) or sub-section (2) of section 150 shall,  notwithstanding 
  
  anything  contained in  this Chapter,  not affect any  liability of  that 
  
  person  of the  nature referred  to  in clause (b)  of sub-section  (1) of  
  
  section 147;  but nothing  in this section shall  affect any  rights against  
  
  the insurer conferred under the provisions  of sections 150, 151 and 152 on the 
  
  person to whom the liability was incurred.