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Important information about MTC buses in Chennai that would surely surprise us!!
Posted on: 02/Oct/2023 9:22:15 AM
It has been brought to light by the findings of an independent auditors report that MTC or Metropolitan Transport Corporation in Chennai has not taken any insurance policy on its buses. In other words, the MTC buses belonging to Chennai do not have insurance coverage. In addition, the MTC has not maintained sufficient corpus in the insurance fund as specified by GO issued on 31st of December 1971.
It is worthy to note that though the section 146 of Motor Vehicles Act 1988 exempts the state transport undertaking from insurance policy it stipulates that funds have to be established and maintained in accordance with rules under the Act.
The liabilities towards pending cases must be estimated and provisions made at the end of the year. This was as per a report submitted to the MTC Board. It was mentioned that sufficient earmarked investments were not made towards the insurance funds. As and when the claims arise from the operational funds of MTC they are settled.
Information collected is that during the year a sum of Rs 33.93 crores was provided towards liability and the total provision towards liability (MACT Insurance fund) outstanding on 31st March 2023 was at Rs 93.03 cr.
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