Motor Vehicle Accident Fund

Q: When did Section 164B of the Motor Vehicles Act come into force?

Section 164B of the Motor Vehicles Act, cited as MV Act 164B, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.

In force From 01 Jul 1989 Act 59 of 1988 As on 18 Oct 2026

Act 59 of 1988 Ministry Road Transport and Highways Enacted 14 Oct 1988 In force 01 Jul 1989 Cited by 3 provisions Instruments 5

Section 164B of the Motor Vehicles Act, 1988 deals with motor Vehicle Accident Fund. The Central Government shall constitute a Fund to be called the Motor Vehicle Accident Fund and thereto shall be credited-- (a) payment of a nature notified and approved by the Central Government; The Act came into force on 01 Jul 1989.

¹[164B. Motor Vehicle Accident Fund. -- (1) The Central Government shall constitute a Fund to be called the Motor Vehicle Accident Fund and thereto shall be credited--
(a) payment of a nature notified and approved by the Central Government;
(b) any grant or loan made to the Fund by the Central Government;
(c) the balance of the Fund created under scheme framed under section 163, as it stood immediately before the commencement of the Motor Vehicles (Amendment) Act, 2019; and
(d) any other source of income as may be prescribed by the Central Government.
(2) The Fund shall be constituted for the purpose of providing compulsory insurance cover to all road users in the territory of India.
(3) The Fund shall be utilised for the following, namely:--
(a) treatment of the persons injured in road accidents in accordance with the scheme framed by the Central Government under section 162;
(b) compensation to representatives of a person who died in hit and run motor accident in accordance with schemes framed under section 161;
(c) compensation to a person grievously hurt in a hit and run motor accident in accordance with schemes framed under section 161; and
(d) compensation to such persons as may be prescribed by the Central Government.
(4) The maximum liability amount that shall be paid in each case shall be such as may be prescribed by the Central Government.
(5) In all cases specified in clause (a) of sub-section (3), when the claim of such person becomes payable, where amount has been paid out of this Fund to any person, the same amount shall be deductible from the claim received by such person from the insurance company.
(6) The Fund shall be managed by such authority or agency as the Central Government may specify having regard to the following:--
(a) knowledge of insurance business of the agency;
(b) capability of the agency to manage funds; and
(c) any other criteria as may be prescribed by the Central Government.
(7) The Central Government shall maintain proper accounts and other relevant records and prepare an annual statement of accounts of the Fund in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(8) The accounts of the Fund shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him.
(9) The Comptroller and Auditor-General of India or any person appointed by him in connection with the audit of the accounts of the Fund under this Act shall have the same rights, privileges and authority in connection with such audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.
(10) The accounts of the Fund, as certified by the Comptroller and Auditor General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of the Parliament.
(11) Any scheme framed under sub-section (3) of section 161, as it stood immediately before the commencement of the Motor Vehicles (Amendment) Act, 2019, shall be discontinued and all rights and liabilities accruing thereunder shall be met out of the Fund with effect from the date of commencement of this Act.]
Section 164B, The Motor Vehicles Act, 1988 (Act 59 of 1988).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

Referred to by 3

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

High Court 12 Apr 2023 KLHC010591042021

… and the Forms and documents received from the claimant, to the Trust constituted under rule 4 of the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022 or the General Insurance Council, as the case may be, with a copy to the following: — (a) the Claims Enquiry Officer; (b) the claimant; 10. Section 164B of the Motor Vehicles Act, 1988 reads thus: "164B. Motor Vehicle Accident Fund: (1) The Central Government shall constitute a Fund to be called the Motor Vehicle Accident Fund and thereto shall be credited- (a) payment of a nature notified and approved by the Central Government; (b) any grant or loan …

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Made under this section, and citing it

3 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

Another 2 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 164B

What does Section 164B of the Motor Vehicles Act deal with?

Section 164B of the Motor Vehicles Act is headed "Motor Vehicle Accident Fund". [164B. Motor Vehicle Accident Fund. -- (1) The Central Government shall constitute a Fund to be called the Motor Vehicle Accident Fund and thereto shall be credited-- (a) payment of a nature notified and approved by the Central Government;

How do I find court cases under Section 164B of the Motor Vehicles Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: MV Act 164B, section 164B MV Act, section 164B of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 164B of the Motor Vehicles Act, and has it changed?

Its own text turns on section 161 (Special provisions as to compensation in case of hit and run motor accident), section 162 (Scheme for golden hour), section 163 (Refund in certain cases of compensation paid under section 161), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 3: most recently GSR 162(E) 25 feb 2022 Motor Vehicles (Accident) Fund Rules, 2022 (2022), then draft GSR 527(E) 2nd August 2021 Motor Vehicles accident fund rules (2021), and 1 more.

When did Section 164B of the Motor Vehicles Act come into force?

Section 164B of the Motor Vehicles Act, cited as MV Act 164B, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 18 Oct 2026. This page is not a substitute for legal advice.