The Inland Vessels Act, 1917 was amended effective from 1.1.1979 to include compulsory third party insurance for vessels plying on Inland Waterways on the lines of liability imposed under Motor Vehicles Act, 1939.

According to the legislation, no person shall use a mechanically propelled vessel (MV) in inland water unless there is in force, in relation to the use of the MPV, a policy of insurance complying with requirements of the Act.

Scope of Cover:

Any liability which may be incurred by him in respect of death or bodily injury to any person or damage to any property belonging to a third party caused by or arising out of the use of the MPV in inland waters;

The death or bodily injury to any passenger of a MPV used or adapted to be used for the carriage of passenger for hire or a reward (Public service vessel).


There is no liability for a claim whilst the vessel is operated by a person not holding a valid certificate of competence as required by the Act.

Contractual Liability.

Death or bodily injury arising out of and in the course of employment of person in the employment of the insured.

War, civil war, riot and strike.

The company shall not be liable after any alteration or termination of insured’s interest in I.M.P.V.

Nuclear exclusions

Requisition or commandering by the Government for any purpose.

Limits of Liability:

For a goods service MPV, the limits Rs. 2,50,000/- including workmen’s compensation liability.

For a passenger carrying MPV for hire and reward, liabilities are as under:

Rs. 2,50,000/- for other than passengers

And in respect of passengers:
Rs. 50,000/- where carrying capacity is not more than 30
Rs. 75,000/- where carrying capacity is between 31 and 60.
Rs. 5 lakhs where carrying capacity exceeds 50.
Subject to the above Rs. 10,000/- per passenger.

Save as provided in clause (d) below, where MPV is a vessel of any other class, the amount of liability incurred.

Irrespective of the class of MPV a limit of Rs. 10,000/- in respect of damage to property of any third party.

In any event limit as per Section 54-C of the Inland Vessels Act, 1917 as amended upto date shall apply.

Certificate of Insurance : A policy has no effect for the purpose of the Act unless a certificate of Insurance is issued in the prescribed form.

The certificate is issued in accordance with the provision of chapter VII of Motor Vehicles Act, 1939 (4 of 1939) as adopted by Section 54-C of the Inland Vessels Act, 1917.

GIC has formulated a Market Agreement between all the subsidiaries for covering the above risk in Miscellaneous Accident Insurance.

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