Frame rules for selling uninsured vehicles in accident to pay victims: Apex court to States
NEW DELHI: The Supreme Court Thursday directed all states to frame rules to allow selling of uninsured vehicles involved in accidents to pay compensation to the victims.
The prevalent rules do not allow selling of the uninsured vehicles making it difficult to pay the compensation for the victims.
The top court directed that the rules should be framed within 12 weeks by all the states in accordance with those currently in force in Delhi.
If the rules currently existing in Delhi are enforced across the country, then it would make driving of uninsured vehicle difficult as owners would run the risk of seizure of vehicle in case of accident and being sold to pay the compensation for the victim.
Seven states -- Jammu and Kashmir, Chattisgarh, Bihar, Punjab, Jharkhand, Puducherry and Lakshdeep -- told the apex court that they have initiated the process of incorporating such rules.
Haryana said it has a similar rule, while Madhya Pradesh has raised certain objections to the rules for compensation. Delhi informed that it already has such rules in place.
A bench of Chief Justice Dipak Misra and Justice D Y Chandrachud said that the magistrate having jurisdiction over the area in which accident takes place will not release the uninsured vehicle to the owner, and instead auction it and deposit the money with the Motor Vehicle Claims Tribunal (MACT) within 15 days.
It said that the amount realised after sale of vehicle shall be released by MACT to the victim while awarding the compensation.
During the hearing, advocate Radhika Gautam appear- ing for the petitioner Usha Devi -- who had challenged the order of the Punjab and Haryana High Court refusing to implead Punjab as party in an accident claim case -- said that 10 states have filed their response.
She said that nine states have framed the rules but rest of the states have not filed their responses.
The bench said that all states should comply with the earlier direction and incorporate rules like the one currently in force in Delhi, within 12 weeks.
Section 6 of the Delhi Motor Accidents Claim Tribunal Rules, 2008 deals with prohibition against release of motor vehicle involved in accident.
Section 6 (1) says that no court shall release an uninsured vehicle involved in an accident resulting in death or bodily injury or damage to property 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.
Section 6 (2) says that when the motor vehicle is not insured against third party risks, it 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 police officer, and proceeds shall be deposited with the Claims Tribunal, within fifteen days for purpose of the compensation to be paid in a claim case arising out of such accident.
Gautam said states have obligation to see that no uninsured motor vehicle is driven on road by virtue of the provisions of Section 196 of the Motor Vehicles Act and they ought to pay the amount and recover it from the owner.