The State government has directed government departments and institutions to obtain third party insurance policy for government vehicles through the State Insurance department.
Although the stipulation was made in 2000, many departments turn to other insurance companies to secure coverage, a tendency that has now prompted the Finance department to issue a fresh order on the matter.
Departments are also required to opt either for a Comprehensive Insurance policy or Act Only Policy with legal liability coverage when applying for a new policy or renewing an existing coverage.
The January 10 Finance department order on securing the coverage through the State Insurance department is applicable to all government departments and agencies, including public sector units and boards, corporations and autonomous institutions, and cooperative and grant-in-aid institutions.
