We draw your attention to our earlier circulars dated 17th May, 28th June and 29th October, 2002 on the captioned subject.

The Authority is still receiving complaints regarding non-acceptance of motor third party proposals by certain offices of the insurance companies. As you may be aware, the Third Party Insurance is a compulsory cover as per the Motor Vehicles Act and cannot be denied by any insurer to any vehicle having a valid fitness certificate.

In this connection, we also draw your attention to TAC circular No.IMT/04/2003 dated 20th June, 2003 explaining the basis of rating of Third Party Liability risk as per matrix considering the individual risk perception and adverse claims experience, if any.

You are therefore, once again directed to see that no operating office denies Third Party Liability cover to any motor vehicle having a valid fitness certificate. Please acknowledge receipt and confirm that you are informing all your operating offices to comply with this direction from the Authority.



(C.S. Rao)
Chairman