(1)A [State Government] [Substituted for the words 'Provincial Government' by A.L.O., 1950.] may, on the application of a cooperative society of [transport vehicle] [Substituted by Act 100 of 1956, section 79, for 'public service vehicle' (w.e.f. 16-2-1957).] owners registered or deemed to have been registered under the Co-operative Societies Act, 1912. or under an Act of a [State] [Substituted for the words 'Provincial Government' by A.L.O., 1950.] Legislature governing the registration of Co-operative Societies and subject to the control of the Registrar of Co-operative Societies of the State, allow the society to transact the business of an insurer for the purposes of this Chapter [* * *] [The words 'as if the society were an authorised insurer' omitted by section 79, Act 100 of 1956, (w.e.f. 16-2-1957).] subject to the following conditions, namely:-(a)the society shall establish and maintain a fund of not less than twenty-five thousand rupees for the first fifty vehicles or fractional part thereof and pro rata for every additional vehicle in the possession of [members of, and insured with, the society subject to a maximum of one hundred and fifty thousand rupees] [Substituted by Act 100 of 1956, section 79, for 'members of the society' (w.e.f. 16-2-1957).] and the said fund shall be lodged in such custody as the [State Government] [Substituted for the words 'Provincial Government' by A.L.O., 1950.] may prescribe and shall not be available for meeting claims or other expenses except in the event of the winding up of the society;(b)[ the insurance business of the society shall, except to the extent permitted under clause (cc), be limited to transport vehicles owned by its members, and its liability shall be limited as specified in sub-section (2) of section 95;] [Substituted by Act 100 of 1956, section 79, for former clause (b) (w.e.f. 16-2-1957).](c)the society shall, if required by the State Government, reinsure against claims above [such amount as may be specified by the State Government] [Substituted by section 79, Act 100 of 1956, for 'a prescribed amount' (w.e.f. 16-2-1957).];(cc)[ the society may, if permitted by the State Government and subject to such conditions and-limitations as may be imposed by it, Accept re-insurances from other societies allowed to transact the business of an insurer under this section;] [Inserted by section 79, Act 100 of 1956, for 'a prescribed amount' (w.e.f. 16-2-1957).](d)the provisions of this Chapter, in so far as they relate to the protection of third parties and to the issue and production of certificates, shall Apply in respect of any insurance effected by the society;(e)an independent authority not associated with the society shall be appointed by the State Government to facilitate and assist in the-settling of claims against the society;(f)the society shall operate on an insurance basis, that is to say,-(i)it shall levy its premiums in respect of a period not exceeding twelve months, during which period the insured shall be held covered in respect of all accidents arising, subject to the limits of liability specified in [* * *] [The words, brackets and letter 'clause (b), of' omitted by section 79, Act 100 of 1956, (w.e.f. 16-2-1957).] sub-section (2) of section 95;(ii)it shall charge premiums estimated to be sufficient, having regard to the risks, to meet the capitalised value of all claims arising during the period of cover, together with an adequate charge for expenses attaching to the issue of policies and to the settlement of claims arising thereunder;(g)the society shall furnish to the [Controller of Insurance] [Substituted by Act 48 of 1952, section 3 and Schedule II, for 'Superintendent of Insurance' (w.e.f. 2.8.1952).] the returns required to be furnished by insurers under the provisions of the Insurance Act, 1938, and the [Controller of Insurance] [Substituted by Act 48 of 1952, section 3 and Schedule II, for 'Superintendent of Insurance' (w.e.f. 2.8.1952).] may exercise in respect thereof any of the powers exercisable by him in respect of returns made to him under the said Act; [* * *] [The word 'and' omitted by Act 100 of 1956, section 79 (w.e.f. 16-2-1957).](h)[ the society shall, in respect of any business transacted by it of the nature referred to in clause (i) of the proviso to subsection (1) of section 95, be deemed to be an insurer within the meaning of sub-section (1) of section 10 and sub-section (6) of section 13 of the Insurance Act, 1938; [Substituted for clause (h) by Act 100 of 1956, section 79 (w.e.f. 16-2-1957).](i)the provisions of the Insurance Act, 1938, (4 of 1938.) relating to the winding up of insurance companies shall, to the exclusion of any other law inconsistent therewith and subject to such modifications as may be prescribed, apply to the winding up of the society.]
