Insurance exemption given to CTU buses: UT to HC

The UT Administration on Monday informed the Punjab and Haryana High Court that it has exempted the Chandigarh Transport Undertaking (CTU) buses from insurance cover till February 28.

Senior Standing Counsel, UT Administration, Sanjay Kaushal apprised a Division Bench comprising Chief Justice Arjan Kumar Sikri and Justice Rakesh Kumar Jain that UT Chandigarh Advisor K K Sharma had issued an order dated January 25 exempting CTU buses under Section 146 (3) of the Motor Vehicle Act 1988 and from Section 146 (1) of the same Act.

The court was further informed that two insurance companies have submitted their quotations for providing insurance cover to buses.

Counsel for the petitioner Ranjivan Singh requested the bench that the UT Administration be directed to extend the exemption if the insurance companies failed to provide insurance to the buses.

Taking stock of the situation, the bench directed the UT Administration that if insurance companies failed to provide services till February 28, then exemption shall continue, and disposed of the matter.

Devi Dayal Sharma had filed the petition seeking directions to the appropriate government to either grant exemption to the CTU buses under Section 143 (3) of the Motor Vehicle Act 1988 or get the buses insured for want of which, the state transport authority is not allowing about 160 CTU buses to ply on the road, resulting in inconvenience.

The court was informed that the number of such buses will increase to 210 at the end of January.

It was further submitted that vide communication dated October 3, 2012 Director Transport was informed that for the year 2012-13, the CTU has established a fund of Rs 1.70 crore as required under Section 143(3) of the Motor Vehicle Act 1988.

CTU have a fleet of 517 buses, out of which 125 are off the road on account of routine repairs or due to being condemned.

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