The state government has decided not to release vehicles involved in accidents resulting in death or injuries unless they have third party insurance cover or the owner furnishes “sufficient security” to the court, enough to pay compensation to the victims.
The amendment is being considered as a major reform to rein in owners who don’t renew third party insurance. The vehicles without third party insurance poses serious risk to victims of accidents involving such vehicles as the insurance companies don’t pay them compensation. In many cases, the owners don’t even have the resources to pay the compensation awarded by the Motor Accident Claims Tribunals.
Prohibiting the release of vehicles involved in accidents, the amended rule says that “no court shall release a motor vehicle involved in an accident resulting in death or bodily injury or damage to property, when such vehicle is not covered by the policy of insurance against third party risks taken in the name of registered owner or unless and until the registered owner furnishes sufficient security to the satisfaction of the court to pay compensation that may be awarded in a claim case arising out of such accident.”