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Core Purpose

Draft rules are published to further amend the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022.

Detailed Summary

The Ministry of Road Transport and Highways has published the draft Central Motor Vehicles (Motor Vehicle Accident Fund) Amendment Rules, 2025, vide notification G.S.R. 351(E) dated 28th May, 2025. These draft rules are proposed under the powers conferred by sections 164B, clauses (v), (w), (x), (y) of sub-section (2) of section 164C, and sub-section (1) of Section 212 of the Motor Vehicles Act, 1988 (59 of 1988). The draft is published for public information as required by Section 212(1) of the said Act. Objections or suggestions are invited within thirty days from the date of availability of the Gazette copies and should be sent to the Additional Secretary (MVL), Ministry of Road Transport and Highways, Transport Bhawan, Parliament Street, New Delhi-110 001 or via email to comments-morth@gov.in. The proposed amendments modify the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022 (principal rules published vide G.S.R 162(E) dated 25 February 2022) by omitting sub-rule (e) in rule 2, substituting 'Amount' with 'Account' in rule 3(c), inserting a new sub-rule (4) in rule 4 regarding Trust functions, substituting the entry for Serial Number 5 in the Table under rule 5, substituting rule 6 to detail the Trust's powers and management (including fund review, scheme recommendations, authorizing agencies, framing rules), amending rule 8 to allow actions by authorised authorities/agencies and insert new sub-rules (8) and (9), amending rule 10 regarding contributions from insurance companies (percentage specified by Trust, deposited as specified by Trust), adding reimbursement deposits, specifying amounts awarded by Motor Accident Claim Tribunals, and allowing the Trust to specify minimum account balances. Rules 11 and 12 are also amended regarding fund utilisation, references to authorised agencies, and reimbursement for subsequently identified vehicles. Rule 14 is proposed for omission.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-29052025-263461 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 308] NEW DELHI, THURSDAY, MAY 29, 2025/JYAISTHA 8, 1947 MINISTRY OF ROAD TRANSPORT AND HIGHWAYS NOTIFICATION New Delhi, the 28th May, 2025 G.S.R. 351(E).—The following draft rules to further amend the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022, which the Central Government proposes to make in exercise of the powers conferred by section 164B and clauses (v), (w), (x), and (y) of sub-section (2) of section 164C of the Motor Vehicles Act, 1988 (59 of 1988), is hereby published as required by sub-section (1) of Section 212 of the said Act for information of all persons likely to be affected thereby and notice is hereby given that the said draft rules shall be taken into consideration after the expiry of a period of thirty days from the date on which the copies of this notification as published in the Gazette of India, are made available to the public. Objections or suggestions, if any, may be sent to the Additional Secretary (MVL), Ministry of Road Transport and Highways, Transport Bhawan, Parliament Street, New Delhi-110 001, Email: comments- morth@gov.in. Any objections or suggestions which may be received from any person with respect to the said draft rules before the expiry of the period aforesaid will be considered by the Central Government. DRAFT RULES: 1. Short title and commencement. - (1) These rules may be called as 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 final 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,— (i) sub-rule (e) shall be omitted; 3. In the said rules, in sub-rule (c) of rule 3, the word "Amount” shall be substituted with the word "Account”. 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 Serial Number 5 of the Table, for the entry in column (2), 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, rule 6 shall be substituted with the following, — "(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 Vehicle Accident Fund) Rules, 2022 and utilisation thereof; (d) to deliberate upon any issues raised by organisations 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; (e) 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 Vehicle Accident Fund) Rules, 2022. (f) 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 under section 162; (g) frame rules, regulations and bye laws of the Trust 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 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 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." 8. In the said rules, in rule 10,— (i) the rule 10 shall be numbered as sub-rule (1); (ii) in clause (a) of sub-rule (1) as so numbered,— (a) for clause (i), the 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 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.”; (iii) in clause (b) of sub-rule (1) as so numbered, — a. clause (i) shall be omitted; (b) after clause (iv), the following clauses shall be inserted, namely,— "(v) any reimbursement deposited in accordance with these rules.”; (iii) in clause (c) of sub-rule (1) as so numbered,— (a) in clause (a), following clause and proviso shall be substituted, namely,一 "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) for clause (b), the following shall be substituted, namely, — "such amount as may be awarded by the Motor Accident Claim Tribunal." (iv) After sub-rule (1) as so numbered, 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.". 9. In rule 11 of the said rules, - (i) in sub-rule (a),— (a) in clause (i), after the words “accidents caused by insured vehicles”, the words “and for any charges relating to the implementation of the scheme framed under Section 162" shall be inserted; (b) clauses (ii) and (iii) shall be omitted; (ii) in sub-rule (b),— (a) in clause (i), in sub-clause (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) sub-rule (c),— a. For clause (i), following shall be substituted, — "Hit and Run Compensation Account shall be utilised for providing compensation to hit and run accident victims as per Section 161, 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) clause (ii) shall be omitted. 10. 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 Vehicle 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 thereto, shall be omitted; (vii) in the Explanation, for the words “the designated agency”, the words “such authority or agency as may be specified by the Central Government.” shall be substituted. 11. 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 25 February 2022.

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