Section 10 in The Orissa Legislative Assembly Deputy Speaker's Motor Car Advance Rules, 1968
10. Insurance of motor car.
(1)The motor car 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 car 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 motor car is not insured against accident for any season 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 motor car.(3)A clause as in Form III shall be inserted in all policies of insurance in respect of the motor car purchased by the Deputy Speaker With the help of advance taken from Government under these rules. The Deputy Speaker taking advance for purchase of motor car shall disclose to the insurer the fact of the motor car having been purchased with the help of such advance and also have the aforesaid clause inserted in the policy of insurance of the said motor car. The motor car shall in no case be insured with any Insurance Company if it does not agree to include the clause in the policy.(4)On receipt of the certificate prescribed in Rule 9 the Accountant-General, Orissa shall obtain from the Deputy Speaker drawing the advance a letter in Form IV to the Motor Insurance Company with whom the motor car 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.(5)If the motor car purchased has not been insured within the prescribed period or has not been re-insured before the expiry of the period of policy, the Accountant-General, Orissa shall call upon the Deputy Speaker either to refund the outstanding balance at once or to produce evidence of insurance or re-insurance 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 car is insured during any period shall not be less than the 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 Deputy Speaker shall refund the difference to Government. The amount to be refunded shall be recovered in not more than 3 monthly instalments.
