CHENNAI: Now, uninsured vehicles in Tamil Nadu can be auctioned off if involved in an accident to raise money to compensate victims. Over a year after the Supreme Court passed a judgment to this effect, the State government has amended the Tamil Nadu Motor Vehicle Accident Claims Tribunal Rules, which came into effect on Thursday.
Even though third-party insurance is a must, there are several vehicles plying on the road without it. When such a vehicle meets with an accident, compensation for victims of the accident becomes an issue. Third-party insurance covers the damage cost by the policy holder’s vehicle to other vehicles, property, or life.
Now, according to the amended rules, the uninsured vehicle involved in an accident can be confiscated and held by authorities for a period of three months. If the vehicle owner fails to pay a cash deposit during that period, the vehicle can be auctioned, and the proceeds may be used to compensate the victims.
While accident victims are eligible for as much as `5 lakh insurance relief in the event of death or permanent disability, apart from the option of approaching the claims tribunal seeking more compensation, not much can be done in the case of uninsured vehicles. “Till now, when uninsured vehicles are involved in accidents, victims were not provided with any compensation,” says lawyer VS Suresh Souli. The owner could get away by paying a penalty of `1,000.
“Now, these owners who fail to get an insurance risk losing their vehicle.” Though so far it’s the RTO that authorises vehicle seizures by the traffic police, the officials are waiting for clarity on the details in this case, said an official.