Section 9 in The Orissa Legislative Assembly Members' Jeep, Motor Cycle, Scooter or a Like Vehicle Advance Rules, 1986
9. Insurance of jeep, motor cycle, scooter or a like vehicle.
(1)The jeep, motor cycle, scooter or a like vehicle purchased with the advance shall be fully insured against loss by fire, theft, or accident. Insurance policies at reduced rate of premium shall, however, be accepted as adequate in cases where-(a)the owner of the jeep, motor cycle, scooter or a like vehicle undertakes to meet the first Rs. 100 or so of a claim preferred against an Insurance Company in the event of an accident; or(b)the jeep, motor cycle, scooter or a like vehicle is not insured against accident for any reason of the year during which it is not in use but is stored in a garage.(2)Such insurance shall be effected within one month from the date of purchase of the jeep, motor cycle, scooter or a like vehicle.(3)A clause as in Form III shall be inserted in all policies of insurance in respect of the jeep.(4)A clause as in Form III shall be inserted in all policies of insurance in respect of the Jeep, motor cycle, scooter or a like vehicle purchased by the member with the help of advance taken from Government under these rules. The member taking advance for purchase of jeep, motor cycle, scooter or a like vehicle shall disclose to the insurer the fact of the vehicle having been purchased with the help of such advance and also have the aforesaid clause inserted in the policy of insurance of the said vehicle. The jeep, motor cycle, scooter or a like vehicle shall in no case be insured with an insurance company if it does not agree to include the clause in the policy.(5)On receipt of the certificate prescribed in Rule 8 the Accountant-General, Orissa, shall obtain from the member drawing the advance a letter in Form IV to the Motor Insurance Company with whom the jeep, motor cycle, scooter or like vehicle is insured to notify to them the fact that the Government are interested in the insurance policy secured. He shall himself forward this letter to the company and obtain, their acknowledgement. In the case of insurances effected on annual basis, the process prescribed above shall be repeated every year until the advance has been fully repaid.(6)If the jeep, motor cycle, scooter or a like vehicle purchased has not been insured within the prescribed period or has not been reinsured before the expiry of the period of policy, the Accountant-General, Orissa, shall call upon the member either to refund the outstanding balance at once or to produce evidence of insurance or reinsurance, as the case may be, within 10 days of receipt of the notice served in that behalf by the Accountant-General, Orissa. The amount for which the jeep, motor cycle, scooter or a like vehicle is insured during any period shall not be less than balance of the advance together with the interest outstanding at the beginning of that period and the insurance shall be renewed from time to time until the amount due is completely repaid. If, at any time and for any reason, the amount insured under a current policy is less than the outstanding balance of the advance together with the interest the member shall refund the difference to Government. The amount to be refunded shall be recovered in not more than 3 monthly instalments.
