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

Having learnt the background we may now understand why the
Undertaking has two funds known as :-
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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.
Debits to Motor Vehicles (Third Party Insurance) Fund are made to
meet liabilities to third parties in respect of personal bodily injuries
including liabilities arising out of Workmen’s Compensation Act, 1923,
where claims have been adjudicated by the motor Accident and Claims
Tribunal or other Civil Courts.
5.9.10.1 PROCEDURE FOR CHECKING :
Claims are made on the undertaking by third parties for damages
and/or compensation. These claims are accepted or repudiated by
Accident Department dependent on the circumstances and individual
merit of each case. Accordingly, some claims are mutually settled and
others are adjudicated by the Motor Accident and Claims Tribunal (for
personal injuries) or other Civil Courts (in other cases).
All claims when accepted have to be sanctioned for payment by the
Committee except that post-facto sanction is obtained in respect of
payments towards claims ordered by the Tribunal or other Civil Courts
when time is of essence because a time limit has been imposed.