Uninsured vehicles to be auctioned to pay accident victims

Bengaluru: The state government, acting on a Supreme Court directive, has made amendments to its existing Motor Vehicles Act thus paving the path for auctioning of uninsured vehicles, involved in accidents, in order to pay compensation to the victims.

The amendment was brought about by inserting a new paragraph, “Rule 232G” in Karnataka Motor Vehicles Rules 1989. 

On September 13 this year, the apex court had ordered all states and Union territories to frame a uniform law, within 12 weeks time, whereby uninsured vehicles involved in fatal or non-fatal accidents would be auctioned and the sale proceeds, deposited with the Motor Accident Claim Tribunal (MACT) to compensate victims.

Accordingly the state government, in a notification issued on Thursday, prohibited courts from releasing motor vehicles involved in accidents and causing death, injury or damage to property if they do not have insurance against third party risks.

The third party insurance should be in the name of the registered owner. If the vehicle’s owner does not have such a policy or fails to produce insurance documents, then he/she can furnish “sufficient security to the satisfaction of the court to pay compensation that may be awarded” to the victim.