Section 241 in The Navy (Pay And Allowances) Regulations, 1966
241. Insurance of the motor car.
(1)The vehicle shall be fully insured as prescribed in this regulation before it is brought into use.(2)The amount for which a vehicle is insured during any period shall not be less than the outstanding balance of the advance together with interest thereon accrued due at the beginning of the period in question, and the policy of insurance must be renewed from time to time the advance is fully repaid. If at any time the amount insured under the current policy is less than the outstanding balance plus interest accrued due, the officer concerned shall refund the difference to the Central Government in not more than three monthly instalments.(3)Insurance policies with qualifying condition "owner drive" or the like shall not be sufficient for the purpose of this regulation. Vehicles purchased with advances from public funds shall in all cases by fully insured against loss or damage by fire or accident:Provided that insurance policies at a reduced rate of premium shall be accepted as adequate in cases where(a)the owner undertakes to meet the first '(Rs. 250] of a claim preferred against an insurance company in event of an accident; or(b)the vehicle is not insured against accidents for any season of the year because it is not in use or is garaged during such season.(4)The insurance policies shall bear an endorsement on the forms specified in Appendix XI-E. After purchase of the conveyance the Controller of Defence Accounts (Navy), Bombay, shall obtain from the officer drawing the advance a letter in the form prescribed in Appendix Xl-F addressed to the Insurance Company with which conveyance is insured notifying it that the Government is interested in the insurance policy secured. He shall himself forward this letter to the Insurance Company and obtain the acknowledgement. In case of insurance effected on annual basis, this procedure shall be repeated every year until the advance has been fully repaid to the Government. In cases where the insurance Company does not issue fresh policy every year and the original policy in which the clauses as in Appendix XI-h already stand inserted is renewed, the Controller of Defence Accounts (Navy), Bombay, shall ensure that the original policy has been renewed by the Company and the relevant clauses in Appendix XII: already stand included in the original policy and that the vehicle has been insured for an amount not less than the outstanding amount of the advance plus interest thereon.(5)Failure to company with the provisions regarding the execution of mortgage bond and insurance of vehicle as mentioned in this regulation shall render the officer drawing the advance liable to refund forthwith the whole of the amount advanced with interest accrued thereon unless good and sufficient reason is shown to the contrary and the competent authority waives the fulfilment of any of the conditions prescribed above by issue of specific order in writing. The competent authority for the purpose shall be the authority competent to sanction the advance.Explanation 1. - The Controller of Defence Accounts (Navy), Bombay may accept such evidence as may be adequate to show that a vehicle has been sufficiently insured and that the insurance is regularly renewed at the proper time, and should bring to the notice of the sanctioning authorities cases in which such evidence is not forthcoming.Explanation 2. - Contravention of the provisions of regulations 240 (2) and 241.
