Nishka Srinivas Veluvali
Published On: February 11, 2022 at 17:48 IST
On Thursday, 10 February, the Supreme Court had asked the Central Government to consider revising the 40-year-old rule under the Motor Vehicles Act that constricts the States to maintain compensation funds up to Rs. 20 lakhs for the victims of the road accidents involving state – run vehicles.
The amount of Rs 20 lakhs or Rs. 2,500 per vehicle was affixed in October 1982 under the Motor Vehicles Act, 1939 and since then it has not been reviewed or revised.
The Bench of Justice Sanjay Kishan Kaul and Justice MM Sundresh stated that, “In our perspective, Centre needs to revisit the figure provided as per Rule 152”.
The Bench was of the opinion that the amount being provided under Rule 152 is too meagre as the compensation claim that is remitted by the States or the State Transport Corporations.
To stress on the point of how irrational this amount is, Amicus Curiae N Vijayaraghavan informed the Court that the total dues that is to be paid by the Tamil Nadu Transport Corporation in the Cases resolved by the Lok Adalat will mount up to Rs. 400 Crore.
The Bench upon noting this asked the Additional Solicitor General Jayant Sud to put up this matter in front of the Centre.
The Court observing the scanty of funds stocked with the State Road Transport Corporations, had in November 16 last year had Ordered the State Government to sum up the additional “equivalent” in order to fulfil the compensation claims that are yet to disburse since last 3 years.
The Bench also permitted the States the choice to look into the probability of insuring the entire fleet of its buses and vehicles.
In response to this allowance, the Amicus Curiae highlighted that due to the Clause in the Section 146 of the Act, the insurance companies refuted to offer third – party insurance cover.
On this submission, the Court directed that if the State desires to get its fleet insured then the Insurance Companies cannot deny to give insurance on the basis of the exemption provided under the Section 146 of the Act.
The Court listed this matter in July.
Also read: Driving License in India according to Motor Vehicles Act