Section 18 in Motor Vehicles Third Party Insurance Rules, 1946
18. Deposits Procedure
(1)Deposits shall be sent by the society with a covering letter to the holding authority.(2)Securities shall be duly transferred to the holding authority by the society.(3)Upon receipt of a deposit under sub-rule (1) of this rule, the holding authority shall send(a)a certificate inForm D to the society;(b)a statement in Form E to such officer as may be specified by the Provincial Government:Provided that, if the holding authority is not satisfied as to the validity to the title of to the securities, he may return them to the society with the request that they shall first be renewed or that such other measures as may be necessary shall be taken to clear the title.(4)The deposit made in cash shall be held by the holding authority to the credit of the society and shall except to the extent, if any,to which the cash has been invested in securities under sub-rule (6) of this rule be returnable to the society in cash in any case in which under The provisions of the Act or of these rules the fund is to be returned.(5)The societies may at any time replace any securities deposited by it under these rules with the holding authority either by cash or by other approved securities or partly by cash and partly by other approved securities provided that such cash, or the value of such other approved securities estimated at the market rates prevailing at the time of replacement,or such cash together with such value, as the case may be, is not less than the value of the securities replaced estimated at the market rates prevailing when they were deposited.(6)The holding authority shall, if so requested by the society,(a)sell any securities deposited by it with the holding authority under these rules and hold the cash realized by such sales as deposit, or(b)invest in approved securities specified by the society the whole or any part of a deposit held by the holding authority in cash or the whole or any part of the cash received by him on the sale of, or on the maturing of securities deposited by the society, and hold the securities in which investment is so made as deposit and may charge the normal commission on such sale or on such investment.(7)Where sub-rule (6) of this rule applies,(a)if the cash realised by the sale of, or on the maturing of, the securities (excluding in the former case the interest accrued) falls short of the market value of the securities at the date on which they were deposited with the holding authority, the society shall make good the deficiency by a further deposit either in cash or in approved securities estimated at the market value of the securities on the day on which they are deposited, or partly in cash and partly in approved securities so estimated, within a period of two months from the date on which the securities matured or were sold; and unless it does so the society shall be deemed to have failed to comply with the condition imposed under clause (a) of sub-section (1) of section 108 of the Act; and(b)if the cash realized by the sale of, or on the maturing of, the securities (excluding in the former case the interest accrued) exceeds the market value of the securities at the date on which they were deposited with the holding authority, the Provincial Government may, if satisfied that the full amount required to be deposited under clause (a)of sub-section (1) of section 108 of the Act is in deposit direct the holding authority to return the excess.
