I was delighted to read the introduction of Motor Vehicle Act 1988 to the public by one K C Angami in your 23rd October issue. I quite appreciate the public interest and welfare concern he has shown on varying issue with particular concern on compensation to the victim of motor vehicle accident.
While he was well emphasis the requirement of compulsory insurance against third party risk for all commercial vehicle, he has misinterpreted and pounded that the third party risk insurance for vehicle of private individual, owners driving/ single hand driving are not within the purview and normally optional.
As an officer of the nodal department of the Motor Vehicles Act, I take it as a bounden responsibility to clarify the matter in the interest of general public so as not to mislead by the news item. Section 146 of the Motor Vehicles Act 1988 prescribes the Necessity for insurance against third party risk. I quote herewith Sub Section (1) “No person shall use, except as a passenger, or cause or allow any other person to use, a motor vehicle in a public place, unless there is in force in relation to the use of the vehicle by that person or that other person, as the case may be, a policy of insurance complying with the requirements of this chapter” unquote.
Plain reading of the text is sufficient to understand that insurance against third party is compulsory for all kinds of motor vehicle when use in public place. However, insurance against comprehensive risk is not compulsory under the Act and is optional. Claims Tribunals are constituted under the provision of Section 165 to adjudicate upon claims for compensation in respect of accidents involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, or damages to any property of a third party so arising, or both.
There is a penal under Section 196 that prescribes punishment with imprisonment that may extend to three months, or with a fine which may extend to one thousand rupees or with both for driving a vehicle in a public place without having an insurance cover against third party risk.
Of late, we have come across Motor Vehicles Act published by law book publisher with incorrect text section 63 (3) (i). We have taken up the matter with the Ministry who has issued clarification on the matter to all the states. One should take abundant care to establish the authenticate publication lest we are mislead by such incorrect publication while reference re to be made for public interest to shun negative impact.
T. Meren Paul
Additional Transport Commissioner
Motor Vehicles Department
