(2)No sum shall be payable by an insurer under sub-section (1) in respect of any judgment or award unless, before the commencement of the proceedings in which the judgment or award is given the insurer had notice through the court or, as the case may be, the Claims Tribunal of the bringing of the proceedings, or in respect of such judgment or award so long as its execution is stayed pending an appeal; and an insurer to whom notice of the bringing of any such proceedings is so given shall be entitled to be made a party thereto, and to defend the action on any of the following grounds, namely: -(a)that there has been a breach of a specified condition of the policy, being one of the following conditions, namely: -(i)a condition excluding the use of the vehicle -(A)for hire or reward, where the vehicle is on the date of the contract of insurance a vehicle not covered by a permit to ply for hire or reward; or(B)for organised racing and speed testing; or(C)for a purpose not allowed by the permit under which the vehicle is used, where the vehicle is a transport vehicle; or(D)without side-car being attached where the vehicle is a two-wheeled vehicle; or(ii)a condition excluding driving by a named person or by any person who is not duly licenced or by any person who has been disqualified for holding or obtaining a driving licence during the period of disqualification or driving under the influence of alcohol or drugs as laid down in section 185; or(iii)a condition excluding liability for injury caused or contributed to by conditions of war, civil war, riot or civil commotion; or(b)that the policy is void on the ground that it was obtained by nondisclosure of any material fact or by representation of any fact which was false in some material particular; or(c)that there is non-receipt of premium as required under section 64VB of the Insurance Act, 1938.
