Section 4(3) in The Public Liability Insurance Act, 1991
(3)The Central Government may, by notification, exempt, from the operation of sub-section (1), any owner, namely:(a)the Central Government;(b)any State Government;(c)any corporation owned or controlled by the Central Government or a State Government; or(d)any local authority:Provided that no such order shall be made in relation to such owner unless a fund has been established and is maintained by that owner in accordance with the rules made in this behalf for meeting any liability under sub-section (1) of section 3.
