Administration Manual - B.E.S.T. Undertaking.

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Rs. 50,000.00 and the remaining amount can be invested in
Government securities which have to be transferred to the bank and it
is open to us to exchange these securities for cash or other
Government Securities of equal or greater market value or both.
All liabilities to Third Parties including liabilities arising out of
Workmen’s Compensation Act, 1923, are met by withdrawals from this
Fund.
Looking to the general scheme of Chapter VIII of the M.V. Act, it does
not seem incumbent on the Undertaking to meet claims arising out of
the use of any vehicle of the Undertaking from the Fund. All that is
required is that the fund be established to meet such claims but it is
open to the Undertaking to meet such claims from any other source.
Therefore, though the yearly contribution may be inadequate to meet
all liabilities arising out of the motor vehicle accidents from this Fund
it is not necessary to transfer to this Fund any amount to maintain the
minimum balance as claims may be met from the Undertaking’s Third
Party Insurance Fund.
Having learnt the background we may now understand why the
Undertaking has two funds known as :
a) Third Party Insurance Fund,
and
b) Motor Vehicles (Third Party Insurance) Fund
as per Motor Vehicles (Third Party Insurance)
Amendment Rules 1960 under Section 133 of
the M.V. Act, 1939.
Debits to Third Party Insurance Fund are made in respect of claims to
damages to Third Party Property vehicle, in addition to vehicles
includes structures, buildings of private persons and also Government
property such as roads, bridges, culverts, causeways, trees, posts and
milestones when such claims are mutually settled or when claims are
adjudicated by Civil Courts.