<p>Vehicles involved in accidents will be auctioned for paying compensation to victims if the owner fails to furnish proof of a third-party insurance policy, according to a new rule introduced by the government.</p>.<p class="bodytext">In a notification issued on Thursday, the state government 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.</p>.<p class="bodytext">By inserting a new paragraph, “Rule 232G” in Karnataka Motor Vehicles Rules 1989, the government finally made its decision on the issue which was in the news for the past several years.</p>.<p class="bodytext">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 s/he can furnish “sufficient security to the satisfaction of the court to pay compensation that may be awarded” to the victim.</p>
<p>Vehicles involved in accidents will be auctioned for paying compensation to victims if the owner fails to furnish proof of a third-party insurance policy, according to a new rule introduced by the government.</p>.<p class="bodytext">In a notification issued on Thursday, the state government 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.</p>.<p class="bodytext">By inserting a new paragraph, “Rule 232G” in Karnataka Motor Vehicles Rules 1989, the government finally made its decision on the issue which was in the news for the past several years.</p>.<p class="bodytext">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 s/he can furnish “sufficient security to the satisfaction of the court to pay compensation that may be awarded” to the victim.</p>
