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Core Purpose

The Central Government, exercising powers under Section 164C(2) read with Section 164B of the Motor Vehicles Act, 1988, makes the Central Motor Vehicles (Motor Vehicle Accident Fund) Amendment Rules, 2025, to amend the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022.

Detailed Summary

The Ministry of Road Transport and Highways published the Central Motor Vehicles (Motor Vehicle Accident Fund) Amendment Rules, 2025, vide G.S.R. 17(E) dated 5th January, 2026, which came into force on January 9, 2026. These rules amend the principal Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022 (originally published vide G.S.R 162(E), dated 25th February, 2022), following a public consultation period initiated by draft rules published as G.S.R 351(E), dated 28th May, 2025, under Section 212(1) of the Motor Vehicles Act, 1988. Key amendments include the omission of clause (e) in rule 2 and the entirety of rule 14 of the 2022 rules, and the substitution of the word 'Amount' with 'Account' in clause (c) of rule 3. Rule 4 is updated to empower the Trust to perform other road accident-related functions as specified by the Central Government. Rule 5 revises the designated officer in the table at serial number 5 to "An officer not below the rank of Deputy Secretary, Ministry of Road Transport and Highways." Rule 6, pertaining to the powers and functions of Trustees, is entirely substituted, granting the Trust broad powers to periodically review the working and utilization of the Motor Vehicles Accident Fund (Trust Corpus), make recommendations on the implementation of the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, and schemes framed under Section 162, authorize agencies for fund management and scheme implementation, deliberate on issues, and frame regulations. Rule 8 is amended to allow an authority or agency authorized by the Trust to perform various functions previously solely vested in the Trustees, including maintaining records of claims received and disbursed, and ensuring timely payments. Rule 10 is modified to stipulate that insurance companies' contributions to the fund (a percentage of total third-party premium) and their deposit periods shall be specified by the Trust, and a new sub-rule (2) is inserted allowing the Trust to specify minimum balances for the Account for Insured Vehicles and the Hit and Run Compensation Account. Rule 11 details changes to fund utilization, clarifying allocation for accidents caused by insured vehicles, other accidents, and hit and run accident victims, explicitly linking to Section 161, Section 164A, and the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022. Rule 12 revises provisions concerning fund utilization by authorized agencies, removes references to a 'designated agency', omits sub-rules (5) and (7) along with its proviso and explanation, and substitutes sub-rule (6) to address reimbursement mechanisms when a hit and run vehicle is subsequently identified. The notification was signed by MAHMOOD AHMED, Addl. Secy.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-09012026-269253 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 17] NEW DELHI, FRIDAY, JANUARY 9, 2026/PAUSHA 19, 1947 MINISTRY OF ROAD TRANSPORT AND HIGHWAYS NOTIFICATION New Delhi, the 5th January, 2026 G.S.R. 17(E). — Whereas, the draft rules to amend the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022 were published, as required by sub-section (1) of Section 212 of the Motor Vehicles Act, 1988 (59 of 1988), vide notification of the Government of India in the Ministry of Road Transport and Highways, vide number G.S.R 351(E), dated the 28th May, 2025, in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), inviting objections and suggestions from all persons likely to be affected thereby before the expiry of the period of thirty days from the date on which copies of the Official Gazette containing the said notification were made available to public; And, whereas, copies of the said Official Gazette notification, were made available to the public on the 29th May, 2025; And, whereas, the objections and suggestions received from the public in respect of the said draft rules have been duly considered by Central Government; Now, therefore, make in exercise of the powers conferred by clauses (v), (w), (x), and (y) of sub-section (2) of section 164C read with Section 164B of the Motor Vehicles Act, 1988 (59 of 1988), the Central Government hereby makes the following rules, to amend the Central Motor Vehicle( Motor Vehicle Accident Fund) Rules, 2022 namely:- 1. Short title and commencement. - (1) These rules may be called the Central Motor Vehicles (Motor Vehicle Accident Fund) Amendment Rules, 2025. (2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette. 2. In the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022 (herein after referred to as the said rules), in rule 2, clause (e) shall be omitted. 3. In the said rules, in clause (c) of rule 3, for the word "Amount", the word "Account" shall be substituted. 4. In the said rules, in rule 4, after sub-rule (3), the following sub-rule shall be inserted, namely:- "(4) The Trust shall perform such other functions and discharge such other responsibilities related to road accidents as may be specified, from time to time, by the Central Government". 5. In the said rules, in rule 5 (i) in the Table in Serial number 5 in column (2), for the entry the following entry shall be substituted, namely: "An officer not below the rank of Deputy Secretary, Ministry of Road Transport and Highways" 6. In the said rules, for rule 6, the following rule shall be substituted namely:- Powers and functions of Trustees - (1) For the furtherance of the objects of the Trust, and matters incidental or ancillary to the attainment thereof, the Trust shall have the following powers:— (a) to periodically review of the working and utilisation of the Motor Vehicles Accident Fund (Trust Corpus), and make recommendations to the Central Government for relevant corrective steps, wherever necessary; (b) to make recommendations to the Central Government on the implementation of the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 and the scheme framed under section 162; (c) to annually review the quantum based on the receipt of contributions made to the Motor Vehicle Accident Fund (Trust Corpus) made under rule 10 of the Central Motor Vehicles (Motor Vehicles Accident Fund) Rules, 2022 and utilisation thereof; (d) to authorise, subject to such conditions and limitations as may be specified in such authorisation, any authority or agency for one or more of the following functions, namely:- (i) the management of the Motor Vehicle Accident Fund; (ii) implementation of the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 and the scheme framed under section 162; (iii) to ensure utilisation of the Motor Vehicles Accident Fund in accordance with rule 11 of the Central Motor Vehicles (Motor Vehicles Accident Fund) Rules, 2022. (e) to deliberate upon any issues raised by any authorities or agencies responsible for the implementation of the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 and the scheme framed under section 162; (f) to make recommendations to the Central Govt. on any other issues related to the administration of the Motor Vehicles Accident Fund or implementation of the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 and the scheme framed; (g) to frame regulations and bye-laws for the working of the Trust; (h) any other matter directly related to the attainment of the objectives for which the Trust was constituted. (2) The general superintendence, direction and management of the affairs and business of the Trust shall vest in the Board of Trustees which may exercise all powers and do all acts and things which may be exercised or done by the Trust. 7. In the said rules, in rule 7, in sub-rule (I), for the word "formulated in accordance with these rules, and the Trust Deed", the word "which" shall be substituted. 8. In the said rules, in rule 8,— (i) in sub-rule (1), — (a) after the words "The Trustees", the words "or such authority or agency as may be authorised by the Trust" shall be inserted; (b) after the word "records", the words "including records of the claims received and disbursed," shall be inserted; (ii) in sub-rule (2), after the words “The Trustees", the words "or such authority or agency as may be authorised by the Trust" shall be inserted; (iii) in sub-rule (3), after the words "the Trustees", the words “or such authority or agency as may be authorised by the Trust" shall be inserted; (iv) in sub-rule (4), after the words "maintained by the Trustees", the words "or such authority or agency as may be authorised by the Trust" shall be inserted. (v) after sub-rule (7), following sub-rules shall be inserted, namely, — "(8) The Trustees or such authority or agency as may be authorised by the Trust shall ensure that payments are made as per the specified time limit under the schemes framed under the Act. (9) The Central Government may take such action as it may deem fit in the interest of implementing these rules, the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 and the Scheme framed under section 162." 9. In the said rules, in rule 10,— (i) the rule 10 shall be numbered as sub-rule (1) thereof; (ii) in clause (a) of sub-rule (1) as so numbered, — (a) for sub clause (i), the following sub clause and proviso shall be substituted, namely, — "such percentage of total third party premium collected by insurance companies carrying on the business of motor insurance in India as may be specified by the Trust: Provided that the insurance companies shall deposit contributions as and when specified by the Trust, within such period as may be specified by the Trust"; (b) sub clause (ii) shall be omitted; (iii) in clause (b) of sub-rule (1) as so numbered, sub clause (i) shall be omitted; (iv) in sub clause (c) of sub-rule (1) as so numbered,— (a) in clause (a), following clause and proviso shall be substituted, namely, — "such percentage of total third party premium collected by insurance companies carrying on the business of motor insurance in India as specified by the Trust: Provided that the insurance companies shall deposit contributions as and when specified by the Trust, within such period as may be specified by the Trust"; (b) clause (b) shall be omitted; (v) After sub-rule (1) as so numbered, the following sub-rule shall be inserted, namely, — "(2) The Trust may, from time to time, specify a minimum balance which shall be maintained in the Account for Insured Vehicles, based on the requirements of the scheme framed under section 162 and the Hit and Run Compensation Account based on the requirements of the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022.". 10. In the said rules in rule 11- (i) in clause (a),— (a) in sub clause (i), after the words "accidents caused by insured vehicles", the words and figures "and for any charges relating to the implementation of the scheme framed under Section 162" shall be inserted; (b) sub clauses (ii) and (iii) shall be omitted; (ii) in clause (b),— (a) in sub clause (i), in item (a), for the words "caused by uninsured vehicles and hit and run motor accident victims", the words "other than those caused by insured vehicles and any charges relating to implementation of the scheme framed under Section 162" shall be substituted; (b) clauses (ii) and (iii) shall be omitted; (iii) in clause (c),— (a) for sub clause (i), following clause shall be substituted, — (i) "Hit and Run Compensation Account shall be utilised for providing compensation to hit and run accident victims as per Section 161 and Section 164A, read with the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 and for any charges related to implementation of the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022."; (b) sub clause (ii) shall be omitted. 11. In the said rules, in rule 12,— (i) in sub-rule (2), for the words "transfer the fund to the designated agency", the words "permit the utilisation of the Motor Vehicle Accident Fund by such authority or agency authorised by the Trust" shall be substituted; (ii) in sub-rule (3), the words "by the designated agency” shall be omitted; (iii) in sub-rule (4), — (a) for the words "motor accidents caused by uninsured vehicles", the words "accidents other than those caused by insured vehicles" shall be substituted; (b) the words "by the designated agency" shall be omitted; (iv) sub-rule (5) shall be omitted; (v) for sub-rule (6), the following sub-rule shall be substituted, namely, — "If the identity of the motor vehicle causing the hit and run accident is subsequently identified - (a) the authorised insurer or owner, as the case may be, shall be liable to reimburse the approved claim amount spent on the cashless treatment of the victim, to the Account for Uninsured Vehicles or Hit and Run Motor Accident; (b) and if the Motor Accident Claim Tribunal has passed an award, the authorised insurer or owner shall return the compensation amount received under the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 to the Hit and Run Compensation Account, in accordance with such award."; (vi) sub-rule (7), along with the proviso and Explanation thereto, shall be omitted; (vii) After sub-rule(7), following Explanation shall be inserted, namely:- "Explanation – For the purposes of this rule, “approved claim amount” shall mean such claim amount approved by such authority or agency as may be specified by the Central Government”. 12. In the said rules, rule 14 shall be omitted. [F. No. RT-11036/64/2019-MVL(Committee E)] MAHMOOD AHMED, Addl. Secy. Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 Sub-section (i), vide notification number G.S.R 162(E), dated the 25th February, 2022.

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