Necessity for insurance against third party risk
109. (1) No person shall use except as a passenger or cause or allow any other person to use a motor vehicle in a public place, unless there is in force in relation to the use of the vehicle by that person or that other person, as the case may be, a policy of insurance complying with the requirements of this Chapter.
Explanation. A person driving a motor vehicle merely as a paid employee, while there is in force in relation to the use of the vehicle no such policy as is required by this sub section, shall not be deemed to act in contravention of the sub section unless he knows or has reason to believe that there is no such policy in force.
(2) Sub section (1) shall not apply to any motor vehicle owned by or on behalf of the Government other than the motor vehicles used for Government purposes connected with any commercial enterprises:
Provided that the Government shall establish and maintain a fund in accordance with the rules made in that behalf under this Ordinance for meeting any liability arising out of the use of any of its vehicle or any person in its employment may incur to third parties or to indemnify any damage to property of a third party or, the death or bodily injury of any person caused by or arising out of the use of an unidentified motor vehicle.
(3) The Government may by order exempt from the operation of sub section (1) any motor vehicle owned by any of the following authorities, namely:-
(a) the Government, if the vehicle is used for Government purposes unconnected with any commercial enterprises;
(b) any local authority;
(c) Bangladesh Road Transport Corporation:
Provided that no such order shall be made in relation to any such authority unless a fund has been established and is maintained by that authority in accordance with the rules made in that behalf under this Ordinance for meeting any liability arising out of the use of any vehicles of that authority or any person in its employment may incur to third parties.