Under section 146(2) of the Motor Vehicles Act, 1988, the requirement of a third-party insurance policy…

Section 146(2) of the Motor Vehicles Act, 1988 provides that section 146(1) does not apply to any vehicle owned by the Central Government or a State Government and used for purposes not connected with any commercial enterprise. Under section 146(3), the appropriate Government may also, by order, exempt vehicles of the Central or a State Government used for a commercial enterprise, of a local authority or of a State Transport Undertaking, but only if that authority has established and maintains a fund as prescribed. The vehicle's age, private corporate ownership or the owner's personal accident cover does not exempt it. (Formerly, s.159(b) referred to vehicles to which s.146 does not apply.)