Page 56 - The Motor Vehicles Act, 1988

(lvi) THE MOTOR VEHICLES (AMENDMENT) ACT, 2019

(2) The Fund shall be constituted for the purpose of providing compulsory
insurance cover to all road users in the territory of India.
(3) The Fund shall be utilised for the following, namely:—
(a) treatment of the persons injured in road accidents in
accordance with the scheme framed by the Central
Government under section 162;
(b) compensation to representatives of a person who died in hit
and run motor accident in accordance with schemes framed
under section 161;
(c) compensation to a person grievously hurt in a hit and run
motor accident in accordance with schemes framed under
section 161; and
(d) compensation to such persons as may be prescribed by the
Central Government.
(4) The maximum liability amount that shall be paid in each case shall be
such as may be prescribed by the Central Government.
(5) In all cases specified in clause (a) of sub-section (3), when the claim of
such person becomes payable, where amount has been paid out of this Fund to
any person, the same amount shall be deductible from the claim received by
such person from the insurance company.
(6) The Fund shall be managed by such authority or agency as the Central
Government may specify having regard to the following:—
(a) knowledge of insurance business of the agency;
(b) capability of the agency to manage funds; and
(c) any other criteria as may be prescribed by the Central
Government.
(7) The Central Government shall maintain proper accounts and other
relevant records and prepare an annual statement of accounts of the Fund in
such form as may be prescribed by the Central Government in consultation
with the Comptroller and Auditor-General of India.
(8) The accounts of the Fund shall be audited by the Comptroller and
Auditor-General of India at such intervals as may be specified by him.
(9) The Comptroller and Auditor-General of India or any person appointed
by him in connection with the audit of the accounts of the Fund under this Act
shall have the same rights, privileges and authority in connection with such
audit of the Government accounts and, in particular, shall have the right to
demand the production of books, accounts, connected vouchers and other
documents and papers and to inspect any of the offices of the Authority.
(10) The accounts of the Fund, as certified by the Comptroller and Auditor-
General of India or any other person appointed by him in this behalf, together
with the audit report thereon, shall be forwarded annually to the Central
Government and the Central Government shall cause the same to be laid before
each House of the Parliament.