The Transport Department, Government of Karnataka (“Department”) issued a notification amending the Karnataka Motor Vehicle Rules,1989 (“Amendment”), effective 4th October,2018prohibiting the release of Motor Vehicles involved in an accident, emphasizing on the need of insurance against third party risk.
As per the amendment, the Court will not release a Motor Vehicle which is involved in an accident resulting in death or bodily injury or damage to property, when the vehicle is not covered by the policy of insurance against third party risks taken in the name of the registered owner.
In case, the registered owner fails to furnish the copy of such insurance policy when demanded by the investigating police officer, the vehicle will not be released, thus making it mandatory to insure the vehicle against third party risks.
The vehicle will be sold off in a 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 the proceeds will be deposited with the Claims Tribunal having jurisdiction over that area.
Source: Karnataka Transport Department