(1) No person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorising him to drive the vehicle; and no person shall so drive a transport vehicle [other than ¹[a motor cab or motor cycle] hired for his own use or rented under any scheme made under sub-section (2) of section 75] unless his driving licence specifically entitles him so to do.

---

(2) The conditions subject to which sub-section (1) shall not apply to a person receiving instructions in driving a motor vehicle shall be such as may be prescribed by the Central Government.

---

¹[Requirement of policies and limits of liability. -- (1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which--

---

(a) is issued by a person who is an authorised insurer; and

---

(b) insures the person or classes of persons specified in the policy to the extent specified in sub-section (2)--

---

(i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person including owner of the goods or his authorised representative carried in the motor vehicle or damage to any property of a third party caused by or arising out of the use of the motor vehicle in a public place;

---

(ii) against the death of or bodily injury to any passenger of a transport vehicle, except gratuitous passengers of a goods vehicle, caused by or arising out of the use of the motor vehicle in a public place.

---

Explanation.--For the removal of doubts, it is hereby clarified that the death of or bodily injury to any person or damage to any property of a third party shall be deemed to have been caused by or to have arisen out of, the use of a vehicle in a public place, notwithstanding that the person who is dead or injured or the property which is damaged was not in a public place at the time of the accident, if the act or omission which led to the accident occurred in a public place.

---

(2) Notwithstanding anything contained under any other law for the time being in force, for the purposes of third party insurance related to either death of a person or grievous hurt to a person, the Central Government shall prescribe a base premium and the liability of an insurer in relation to such premium for an insurance policy under sub-section (1) in consultation with the Insurance Regulatory and Development Authority.

---

(3) A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by whom the policy is effected, a certificate of insurance in the prescribed form and containing the prescribed particulars of any condition subject to which the policy is issued and of any other prescribed matters; and different forms, particulars and matters may be prescribed in different cases.

---

(4) Notwithstanding anything contained in this Act, a policy of Insurance issued before the commencement of the Motor Vehicles (Amendment) Act, 2019 shall be continued on the existing terms under the contract and the provisions of this Act shall apply as if this Act had not been amended by the said Act.

---

(5) Where a cover note issued by the insurer under the provisions of this Chapter or the rules or regulations made thereunder is not followed by a policy of insurance within the specified time, the insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify the fact to the registering authority or to such other authority as the State Government may prescribe.

---

(6) Notwithstanding anything contained in any other law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons.]

---

---

¹[Settlement by insurance company and procedure therefor. -- (1) The insurance company shall, upon receiving information of the accident, either from claimant or through accident information report or otherwise, designate an officer to settle the claims relating to such accident.

---

(2) An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before the Claims Tribunal giving such details, within thirty days and after following such procedure as may be prescribed by the Central Government.

---

(3) If, the claimant to whom the offer is made under sub-section (2),--

---

(a) accepts such offer,--

---

(i) the Claims Tribunal shall make a record of such settlement, and such claim shall be deemed to be settled by consent; and

---

(ii) the payment shall be made by the insurance company within a maximum period of thirty days from the date of receipt of such record of settlement;

---

(b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal to adjudicate such claim on merits.]

---

---

¹[Information to be given regarding accident.-- The police officer shall, during the investigation, prepare an accident information report to facilitate the settlement of claim in such form and manner, within three months and containing such particulars and submit the same to the Claims Tribunal and such other agency as may be prescribed.]

---

¹[Scheme for golden hour. -- (1) Notwithstanding anything contained in the General Insurance Companies (Nationalisation) Act, 1972 (57 of 1972) or any other law for the time being in force or any instrument having the force of law, the insurance companies for the time being carrying on general insurance business in India shall provide in accordance with the provisions of this Act and the schemes made under this Act for treatment of road accident victims, including during the golden hour.

---

(2) The Central Government shall make a scheme for the cashless treatment of victims of the accident during the golden hour and such scheme may contain provisions for creation of a fund for such treatment.

---

¹[Duty to furnish particulars of vehicle involved in accident. --A registering authority or the officer-in-charge of a police station shall, if so required by a person who alleges that he is entitled to claim compensation in respect of an accident arising out of the use of a motor vehicle, or if so required by an insurer against whom a claim has been made in respect of any motor vehicle, furnish to that person or to that insurer, as the case may be, on payment of the prescribed fee, any information at the disposal of the said authority or the said police officer relating to the identification marks and other particulars of the vehicle and the name and address of the person who was using the vehicle at the time of the accident or was injured by it and the property, if any, damaged in such form and within such time as the Central Government may prescribe.]

---

¹[164A. Scheme for interim relief for claimants. -- (1) The Central Government, may make schemes for the provision of interim relief to claimants praying for compensation under this Chapter.

---

(2) A scheme made under sub-section (1) shall also provide for procedure to recover funds disbursed under such scheme from the owner of the motor vehicle, where the claim arises out of the use of such motor vehicle or other sources as may be prescribed by the Central Government].

---

¹[164B. Motor Vehicle Accident Fund. -- (1) The Central Government shall constitute a Fund to be called the Motor Vehicle Accident Fund and thereto shall be credited--

---

(a) payment of a nature notified and approved by the Central Government;

---

(b) any grant or loan made to the Fund by the Central Government;

---

(c) the balance of the Fund created under scheme framed under section 163, as it stood immediately before the commencement of the Motor Vehicles (Amendment) Act, 2019; and

---

(d) any other source of income as may be prescribed by the Central Government.

---

(2) The Fund shall be constituted for the purpose of providing compulsory insurance cover to all road users in the territory of India.

---

(3) The Fund shall be utilised for the following, namely:--

---

(a) treatment of the persons injured in road accidents in accordance with the scheme framed by the Central Government under section 162;

---

(b) compensation to representatives of a person who died in hit and run motor accident in accordance with schemes framed under section 161;

---

(c) compensation to a person grievously hurt in a hit and run motor accident in accordance with schemes framed under section 161; and

---

(d) compensation to such persons as may be prescribed by the Central Government.

---

(4) The maximum liability amount that shall be paid in each case shall be such as may be prescribed by the Central Government.

---

(5) In all cases specified in clause (a) of sub-section (3), when the claim of such person becomes payable, where amount has been paid out of this Fund to any person, the same amount shall be deductible from the claim received by such person from the insurance company.

---

(6) The Fund shall be managed by such authority or agency as the Central Government may specify having regard to the following:--

---

(a) knowledge of insurance business of the agency;

---

(b) capability of the agency to manage funds; and

---

(c) any other criteria as may be prescribed by the Central Government.

---

(7) The Central Government shall maintain proper accounts and other relevant records and prepare an annual statement of accounts of the Fund in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.

---

(8) The accounts of the Fund shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him.

---

(9) The Comptroller and Auditor-General of India or any person appointed by him in connection with the audit of the accounts of the Fund under this Act shall have the same rights, privileges and authority in connection with such audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.

---

(10) The accounts of the Fund, as certified by the Comptroller and Auditor General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of the Parliament.

---

(11) Any scheme framed under sub-section (3) of section 161, as it stood immediately before the commencement of the Motor Vehicles (Amendment) Act, 2019, shall be discontinued and all rights and liabilities accruing thereunder shall be met out of the Fund with effect from the date of commencement of this Act.]

---

---

¹[164C. Power of Central Government to make rules. -- (1) The Central Government may make rules for the purposes of carrying into effect, the provisions of this Chapter.

---

(2) Without prejudice to the generality of the foregoing power, such rules may provide for--

---

(a) the forms to be used for the purposes of this Chapter including,--

---

(i) the form of the insurance policy and the particulars it shall contain as referred to in sub-section (3) of section 147;

---

(ii) the form for making changes in regard to the fact of transfer in the certificate of insurance under sub-section (2) of section 157;

---

(iii) the form in which the accident information report may be prepared, the particulars it shall contain, the manner and the time for submitting the report to the Claims Tribunal and the other agency under section 159;

---

(iv) the form for furnishing information under section 160; and

---

(v) the form of the annual statement of accounts for the Motor Vehicle Accident Fund under sub-section (7) of section 164B;

---

(b) the making of applications for and the issue of certificates of insurance;

---

(c) the issue of duplicates to replace certificates of insurance lost, destroyed or mutilated;

---

(d) the custody, production, cancellation and surrender of certificates of insurance;

---

(e) the records to be maintained by insurers of policies of insurance issued under this Chapter;

---

(f) the identification by certificates or otherwise of persons or vehicles exempted from the provisions of this Chapter;

---

(g) the furnishing of information respecting policies of insurance by insurers;

---

(h) adopting the provisions of this Chapter to vehicles brought into India by persons making only a temporary stay therein or to vehicles registered in a reciprocating country and operating on any route or within any area in India by applying those provisions with prescribed modifications;

---

(i) the requirements which a certificate of insurance is required to comply with as referred to in clause (b) of section 145;

---

(j) administration of the Fund established under sub-section (3) of section 146;

---

(k) the minimum premium and the maximum liability of an insurer under sub-section (2) of section 147;

---

(l) the conditions subject to which an insurance policy shall be issued and other matters related thereto as referred to in sub-section (3) of section 147;

---

(m) the details of settlement, the time limit for such settlement and the procedure thereof under sub-section (2) of section 149;

---

(n) the extent of exemptions and the modifications under the proviso to sub-section (3) of section 158;

---

(o) the other evidence under sub-section (5) of section 158;

---

(p) such other agency to which the accident information report as referred to in section 159 may be submitted;

---

(q) the time limit and fee for furnishing information under section 160;

---

(r) the higher amount of compensation in respect of death under clause (a) of sub-section (2) of section 161;

---

(s) a sum to be paid as interim relief as referred to in clause (a) of sub-section (4) of section 161;

---

(t) the procedure for payment of compensation under sub-section (1) of section 164;

---

(u) such other sources from which funds may be recovered for the scheme as referred to in sub-section (2) of section 164A;

---

(v) any other source of income that may be credited into the Motor Vehicle Accident Fund under sub-section (1) of section 164B;

---

(w) the persons to whom compensation may be paid under clause (d) of sub-section (3) of section 164B;

---

(x) the maximum liability amount under sub-section (4) of section 164B;

---

(y) the other criteria under clause (c) of sub-section (6) of section 164B;

---

(z) any other matter which is to be, or may be, prescribed or in respect of which provision is to be made by rules.]

---

---

(1) The power to make rules under this Act is subject to the condition of the rules being made after previous publication.

---

(2) All rules made under this Act shall be published in the Official Gazette, and shall unless some later date is appointed, come into force on the date of such publication.

---

(3) Every rule made by any State Government shall be laid, as soon as may be after it is made before the State Legislature.

---

(4) Every rule made by the Central Government under this Act, every scheme made by the Central Government under sub-section (1) of section 75 and sub-section (1) of section 163 and every notification issued by the Central Government under sub-section (4) of section 41, sub-section (1) of section 58, sub-section (1) of section 59, the proviso to sub-section (1) of section 112, ¹[section 118] ²[sub-section (4) of section 163A] ³[section 164, section 177A] and sub-section (4) of section 213 shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, scheme or notification or both Houses agree that the rule or scheme should not be made or the notification should not be issued, the rule, scheme or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule, scheme or notification.

---

¹[(5) Every notification issued by the State Government under section 210A shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the House agrees or both Houses agree, as the case may be, in making any modification in the notification or the House agrees or both Houses agree, as the case may be, that the notification should not be issued, the notification shall thereafter have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification.]

---