law: The Motor Vehicles Act, 1988
  146. 
  
  Necessity for insurance against third party risk.
  
  
  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.
  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 Act for 
  
  meeting any liability arising out of the use of any vehicle of that authority 
  
  which that authority or any person in its employment may incur to third parties.
  
  
  Explanation.--For the  purposes of this sub-section, "appropriate Government" 
  
  means the Central Government or a State Government, as the case may be, and--