must be a policy which (a) is issued by a person who is an authorised insurer or by a co operative socie ty allowed under section 108 to transact the business of an insurer, and 896 (b) insures the person or classes of persons specified in the policy to the extent speci fied in sub section (2) (i) against any liability which may be incurred by him in respect of the death or of bodily injury to any person or damage to any property of a third party caused by or aris ing out of the use of the vehicle in a public place; (ii) against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place: * * * * *" Under section 95(1)(b)(i) of the Act it is required that policy of insurance must be a policy which insures the person, against any liability which may be incurred by him in respect of death or bodily injury to any person or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place.