The Transport (B) Department of Kerala, through a notification dated 24^th November, 2018 has amended the Kerala Motor Vehicles Rules, 1989 by prohibiting the release of Motor Vehicles involved in an accident, emphasizing the need of insurance against third party risk.

Key Highlights:

• As per the amendment, the Court will not release a Motor Vehicle which is involved in an accident resulting in death or bodily injury or damage to property when such vehicle is not covered by the policy of insurance against third party risks taken in the name of owner.
• In case, the registered owner fails to furnish the copy of such insurance policy when demanded by the investigating police officer, the vehicle will not be released, thus making it mandatory to insure the vehicle against third party risks.
• The Court will release the motor vehicle involved in an accident only when the 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.
• The Motor Vehicle shall be sold off in public auction by the Magistrate having jurisdiction over the area where accident has occurred, on expiry of 3 months of the vehicle being taken in possession by the investigating police officer, and proceeds thereof shall be deposited with the Claims Tribunal having jurisdiction over the area in question, within 15 days for the purpose of satisfying the compensation that may have been awarded, or may be awarded in a claim case arising out of such accident.
• The Motor vehicle shall be sold off subject to the following conditions:
  1. If the motor vehicles are not covered by a policy of insurance against the third-party risks, or
  2. If the owner of the motor vehicle fails to furnish copy of such policy in circumstance mentioned above, or
  3. If owner fails to furnish sufficient security as provided above.

Source: Transport (B) Department, Kerala

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