Vehicle to be auctioned, if you don't carry third party insurance in AP

Amaravati: If you do not carry a valid third party insurance and met in an accident, then your vehicle will be auctioned by the Court!. The state government has made amendments to the AP Motor Vehicles Rules, 1989 by incorporating a new Rule 471(A), on Tuesday, to ensure justice to the victims in the accident. The new rule prohibits against release of motor vehicles involved in an accident without valid third party insurance policy.

In exercise of the powers conferred under section 176(e) of the Motor Vehicle Act, 1988 (Central Act No.59 of 1988), the state government made the amendment to the AP Motor Vehicle Rules, 1989 and published at pages 1-315 of the Rules supplement part-I.

As per the amendment, the new rule states 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, Unless and until the registered owner furnished sufficient security to the satisfaction of the court which is equivalent to the value of the seized vehicle involved in such accident, the vehicle will not be released."

"Where the motor vehicle is not covered by a policy of insurance against third party risks, the motor vehicle shall be sold off in public auction by the magistrate having jurisdiction over the area where the accident occurred. On expiry of three months of the vehicle being taken in possession by the investigating Police Officer, and proceeds thereof shall be deposited with the Claims Tribunal. Within fifteen days for the purpose of satisfying the compensation that may have been awarded, or may be awarded in a claim case arising out of such an accident.", the rules made it clear.

In fact, the state government has brought this amendment to the rules as per the directions of Supreme Court in Civil Appeal in 2016 between Usha Devi & Anr. Vs Pawan Kumar & others. "While referring to a rule in the Delhi Motor Accident Claims Tribunal Rules, that all State Governments shall enact such a rule to ensure that any vehicle seized with reference to a road accident involved in a death or serious injury shall not be released by any court without proof of proper third party insurance. This is to ensure justice to accident victims for getting compensation."

MT Krishna Babu, Principal Secretary, Transportation, Roads and Buildings department has issued a GO MS No 36 on Tuesday, enacting the amendments in the rules.