The Department of Transport, Government of Punjab (“Department”) has in a recent Notification dated 21^st September, 2018 proposed amendments to the Punjab Motor Vehicles Rules, 1989 (“Principal Rules”) adding provisions prohibiting release of motor vehicle involved in accident which do not have a Third party insurance coverage.

As per the Punjab Motor Vehicles (Amendment) Rules, 2018 (“Amendment Rules”), if any vehicle which meets with an accident is not covered under a third party insurance and the owner fails to furnish the copy of the insurance to the investigating officer, the vehicle will not be released by the court and instead will be sold off in public auction by the Magistrate of that area (where the accident took place), within 3 months from the date of accident.

Such is reflected in sub-rule (231-B) which has been inserted after sub-rule (231-A):

“231-B. Prohibition against release of motor vehicle involved in accident.-

1. 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 when the registered owner fails to furnish copy of such insurance policy despite demand by investigating police officer, 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
2. Where the motor vehicle is not covered by a policy of insurance against third party risks, or when registered owner of the motor vehicle fails to furnish copy of such policy in circumstance mentioned in sub-rule (1), the motor vehicle shall be sold off in public auction by the Magistrate having jurisdiction over the area where 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 having jurisdiction over the area in question, within fifteen days for purpose of satisfying the compensation that may have been awarded, or may be awarded in a claim case arising out of such accident.”.

The Amendment Rules will come into force on the date of their publication in the Official Gazette.

Source: Department of Transport, Government of Punjab

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