Rajasthan State Road Transport Corporation Motor Vehicle Third Party Liability Fund in Rajasthan

Q: What does the term "Fund" refer to in this chapter?

The term "Fund" refers to the fund established as prescribed in Rule 151 of the Central Motor Vehicles Rules, 1989.

Q: What is meant by "Undertaking" in the context of these rules?

In this context, "Undertaking" means the Rajasthan State Road Transport Corporation.

Q: How is "Corporation" defined in this chapter?

"Corporation" refers to the Rajasthan State Road Transport Corporation, which is established under Section 3 of the Rajasthan Road Transport Corporation Act.

Q: What does the term "Year" signify in these rules in Rajasthan?

The term "Year" signifies the financial year.

Q: What is the purpose of establishing the Fund according to Rule 9.2?

The Fund is established to meet any liability arising from the use of any vehicle of the undertaking, including liabilities incurred by the undertaking or any of its employees to third parties.

Q: For what purposes can the Fund be used, as outlined in Rule 9.3?

The Fund can be used to cover:

1. Claims for death or bodily injury to persons or passengers caused by or arising from the use of the motor vehicles.
2. Damage to property caused by the use, including loading and unloading, of the motor vehicles.
3. Liabilities under the Workman's Compensation Act, 1923, for injuries or death of paid employees.
4. Payment of medical expenses for injuries to paid employees.
5. Damage to property held in trust or control of the Corporation.

Note: The Fund cannot be used for certain liabilities such as those related to loading/unloading, employment-related injuries, damage to bridges or roads, etc.

Q: What are the steps to be taken in case of an accident as per Rule 9.4?

The steps include:

1. Reporting the accident to the nearest Police Station and having it recorded in the prescribed Road Accident Report Form R.S. 9.1.
2. Sending a duplicate report to the District Magistrate using Form R.S. 9.2 and retaining a copy for the Corporation’s records.
3. The District Magistrate will depute an executive Magistrate to investigate the accident and report on liability and compensation.
4. The Magistrate's findings and recommendations will be forwarded to the General Manager, Rajasthan State Road Transport Corporation.

Q: How are claims settled according to Rule 9.5 in Rajasthan?

Claims are settled as follows:

1. The General Manager will generally accept the Magistrate’s finding on liability but may not accept the compensation amount set by the Magistrate.
2. For claims exceeding Rs. 500, the matter is referred to the Corporation.
3. Payments over Rs. 500 require consultation with the Legal Remembrancer and final sanction from the Government.
4. Payments under court decrees must be made according to court directions, deducting any previously paid amounts.

Q: What circumstances exclude the payment of compensation under these rules as mentioned in Rule 9.6?

Compensation is not paid when:

1. The party is entitled to indemnity under any other law.
2. Liability arises from war, civil war, riots, civil commotion, or natural disasters beyond the Corporation’s control.
3. The accident or damage arises from rule violations or traffic regulations by the concerned party.
4. In exceptional cases, where liability is unclear but serious hardship is involved, the Corporation may order an ex gratia payment.

Q: How is the compensation budgeted according to Rule 9.7 in Rajasthan?

The cost of compensation awarded is met from the Fund, and provision for this must be included in the budget of the Undertaking.

Q: What is the procedure for payment of compensation as per Rule 9.8?

The Assistant Regional Manager or General Manager will draw the compensation amount from the State Bank of Bikaner and Jaipur, quoting the sanction order number and date.

Compensation payments are made through the District Magistrate, who will obtain a receipt from the claimant for full satisfaction of the claim.

Q: What expenditures can be debited to the Fund according to Rule 9.9 in Rajasthan?

Reasonable expenditures, including legal fees and other allied expenses, are debited to the Fund.

1. Expenditures up to Rs. 50 are managed by the Assistant Regional Manager.
2. Expenditures from Rs. 51 to Rs. 100 are handled by the General Manager.
3. Expenditures from Rs. 101 to Rs. 500 are managed by the Chairman of the Corporation.
4. Amounts exceeding Rs. 500 require Corporation sanction with Government approval.

Q: How should the Fund be invested and managed as per Rules 9.10 to 9.14?

The Fund must be invested as prescribed in Rule 153 of the Central Motor Vehicles Rules, 1989.

1. Security deposits in the Fund should follow Rule 154.
2. Deposits and their interest should be managed according to Rule 155 and credited to the authority.
3. The Fund must be operated through a separate account maintained in the Banks of the Undertaking.

Q: How is the audit of the Fund's account conducted according to Rule 9.15?

The audit of the Fund’s account is conducted in the same manner as other accounts of the undertaking. The yearly audited statement should include:

1. The position of the Fund at the beginning of the year.
2. The contributions received during the year.
3. The claims paid out of the Fund during the year and the position of the Fund at the end of the year.
4. The position of the Fund's investments at the end of the year.

This statement must be furnished to the Corporation in Form R.S. 9.3.

Q: Who has the final authority in all matters related to the Fund?

The decision of the Government is final in all matters connected with the Fund.

Q: What powers does the Government have regarding the rules and operations of the Fund as stated in Rule 9.17?

The Government is competent to:

1. Modify or make additions to these rules.
2. Frame any supplementary rules necessary for the functioning of the Fund from time to time.

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