The central legal point established in the judgment is the State's obligation under Section 196 of the Motor Vehicles Act, 1988 to ensure that no uninsured motor vehicle is driven on the road and to provide compensation to victims of accidents involving uninsured vehicles.

ORDER

1. Though the present appeals arise from an application seeking impalement being rejected by the Motor Accident Claims Tribunal, Barnala and affirmation of the same in Civil Revision Nos.4324 and 4336 of 2016 by the High Court of Punjab & Haryana, yet, Ms. Radhika Gautam, learned counsel for the appellants raised a different issue altogether when the matter was listed on 21.02.2018.

2. It was submitted by Ms. Gautam, learned counsel appearing for the appellants that when numerous accidents occur and there is no insurance or valid insurance, it becomes extremely difficult on the part of the tribunals to pass an executable award. Elaborating the same, she had submitted, there are owners who cannot really pay and, therefore, there should be some arrangement by which the State can bear the responsibility.

3. When such a submission was advanced at the Bar by learned counsel for the appellants, we thought it appropriate to hear the learned Attorney General for India.

4. When the matter was listed on 26.03.2018, a detailed order was passed which we feel it necessary to reproduce :

"We have heard Ms. Radhika Gautam, learned counsel for the appellants and Mr. K.K.Venugopal, learned Attorney General for India, whose assistance was sought vide order dated 21.02.2018.

It is submitted by Ms. Gautam that the High Court has fallen into error by affirming the order passed by the Motor Accident Claims Tribunal, Barnala, which has declined to impaled the State of Punjab as a party, despite the fact that the deceased - a sole bread earner of the family had died in an accident. It is not disputed that the vehicle in question was not insured.

It is submitted by the learned counsel for the appellants that the State has an obligation to see that no uninsured motor vehicle is driven on road by virtue of the provisions of Section 196 of the Motor Vehicles Act, 1988 (for brevity, 1988 Act) and, therefore, the State ought to pay the amount and recover it from the owner. She has commended us to the decisions rendered in Jai Prakash vs. National Insurance Company Limited and others, (2010) 2 SCC 607 especially paragraphs 33 to 39 and 41. The Court, in the said case, has dealt with many an aspect and, thereafter, to ensure that all accident victims get compensation, has suggested for a comprehensive and unified statute dealing with the accidents so that the families of the helpless victims do not suffer on account of the fact that the vehicle is not insured. We can do no better but to reproduce paragraphs 33 to 39 which read as follows:

"33. To ensure that all accident victims get compensation, it is necessary to formulate a more comprehensive scheme for payment of compensation to victims of road accidents, in place of the present system of third party insurance.

34. For example, in South Africa and some other African countries, Road Accident Funds have been created, managed by Road Accident Fund Commissions, thereby eliminating the need for third party insurance. A fuel levy/surcharge is collected on the sale of petrol and diesel and credited to such fund. All accident victims, without exception, are paid compensation from out of the said fund by the Commission. But the feedback from operational statistics relating to such funds is that the scheme, while successful in smaller countries, may encounter difficulties and financial deficits in larger countries like South Africa or developing countries with infrastructure deficiencies.

35. An alternative scheme involves the collection of a one time (life time) third party insurance premium by a Central Insurance Agency in respect of every vehicle sold (in a manner similar to the collection of life time road tax). The fund created by collection of such third party insurance can be augmented/supplemented by an appropriate road accident cess/surcharge on the price of petrol/diesel sold across the country.

36. Such a hybrid model which involves collection of a fixed life time premium in regard to each vehicle