The Securities and Exchange Commission of Pakistan (SECP) will make it mandatory for every insurance company to ensure that document for insurance certificate of compulsory motor vehicle insurance shall contain such distinct marks and security features which cannot be forged, fabricated or made bogus. According to the proposed amendments in Motor Vehicles Act 1939 issued by the SECP here on Friday, the SECP has issued obligation of insurance companies to issue compulsory motor insurance policies with distinct marks. It shall be the duty of every insurance company that document for certificate of insurance shall contain such distinction marks and security features so that it may not be easily forged, fabricated or bogus.
Any person who fails to produce certificate of insurance, it shall be an offence liable to punishment of fine up to ten thousand rupee by the respective traffic police officer or Motorway Police officer or any other authority or officer authorized as may be specified by the Federal or Provincial Government through Notification, SECP said.
In case it is discovered that the vehicle does not have any certificate of insurance, it shall be offence punishable by the traffic police officer or Motor police officer or any other authorized officer then he shall impound the vehicle forthwith and shall pay penalty of amount up to one lakh.
Any one producing any bogus, fake or fabricated insurance policy required to traffic police officer or Motor police officer or any other authorized officer then it shall be an offence and shall be punishable with imprisonment of one years or fine up to one million or both and seizure of the vehicle.
Under the new law on necessity for insurance against third party risk, the SECP said that no person shall drive or allow any other person to drive a motor vehicle in a public place, unless such person or vehicle has a valid third party risk certificate of insurance complying with the requirements of this Chapter.
A person driving a motor vehicle merely as a paid employee, shall not be deemed to act in contravention of the sub-section unless he knows or has reason to believe that there is no such policy in force, the SECP said.
A certificate of insurance shall cover any liability incurred in respect of any one accident up to the following limits: Where the vehicle is a goods vehicle, a limit of five hundred thousand rupees per person, the liabilities, if any, arising under the Workmen's Compensation Act, 1923, in respect of the death of, or bodily injury to employees other than the driver; where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment, a limit of Rs 500,000 per person and where the vehicle is vehicle of any other class the amount of the liability incurred.
Under the revised Motor Vehicles Act 1939, a registering authority or the officer in charge of a police station shall, if so required by a person who alleges that he is entitled to claim compensation in respect of an accident arising out of the use of a motor vehicle, or if so required by an insurer against whom a claim has been made in respect of any motor vehicle, furnish to that person or to that insurer, as the case may be, on payment of prescribed fee any information at the disposal of the said authority or the said police officer relating to the identification marks and other particulars of the vehicle and the name and address of the person who was using the vehicle at the time of the accident or was injured by it.
The SECP further said that a provincial government may, by notification in the official Gazette, appoint a person or a body of persons to investigate and report on accidents involving the death of or bodily injury to any person arising out of the use of motor vehicles and the extent to which their claims to compensation have been satisfied and to advise and assist such persons or representatives in presenting their claims for compensation: Provided that nothing in this section shall confer on any such person or body of persons the right to adjudicate in any way on the liability of the insurer or on the amount of damages to be awarded except at the express desires of the insurer concerned.
The SECP said that in addition to the powers conferred by any other section, the Federal Government may, by notification in the official Gazette, make rules for motor vehicles temporarily leaving or visiting Pakistan and incidental matters provided under section 92; identification by certificates or otherwise of persons or vehicles exempted from the provisions of this Chapter and for establishment and regulating the activities of insurer; and generally to carry out the purposes of this Act.
Provided that, before making any such rule, the draft thereof shall be published by the concerned Minister-in-Charge of the Federal Government in the official Gazette for eliciting public opinion thereon within a period of not less than fourteen days from the date of publication.
Any rule made may provide that a contravention thereof shall be punishable with a penalty which may extend to five million rupees and, where the contravention is a continuing one, with a further penalty which may extend to one hundred thousand rupees for every day after the first during which such contravention continues.
The Commission may, by notification in the official Gazette, alter or add to any of the tables, requirements, forms and other provisions contained in any of the schedules and such alterations or additions shall have effect as if enacted in this Act and shall come into force on the date of the notification, unless the notification otherwise directs.