108. Co- operative Insurance.
(1) A State Government may, on the application of a cooperative society of 1[ transport vehicle] owners registered or deemed to have been registered under the Co- operative Societies Act, 1912 . or under an Act of a State Legislature governing the registration of Co- operative Societies and subject to the control of the Registrar of Co- operative Societies of the State, allow the society to transact the business of an insurer for the purposes of this Chapter 2[ subject to the following conditions, namely:-
(a) the society shall establish and maintain a fund of not less than twenty- five thousand rupees for the first fifty
vehicles or fractional part thereof and pro rata for every additional vehicle in the possession of 1[ members of, and insured with, the society subject to a maximum of one hundred and fifty thousand rupees] and the said fund shall be lodged in such custody as the State Government may prescribe and shall not be available for meeting claims or other expenses except in the event of the winding up of the society;
(b) the insurance business of the society shall, except to the extent permitted under clause (cc), be limited to trans- port vehicles owned by its members, and its liability shall be limited as specified in sub- section (2) of section 95;]
(c) the society shall, if required by the State Government, reinsure against claims above 3[ such amount as may be specified by the State Government];
(cc) 4[ the society may, if permitted by the State Government and subject to such conditions and- limitations as may be imposed by it, Accept re- insurances from other societies allowed to transact the business of an insurer under this section;
(d) the provisions of this Chapter, in so far as they relate to the protection of third parties and to the issue and production of certificates, shall Apply in respect of any insurance effected by the society;
(e) an independent authority not associated with the society shall be appointed by the State Government to facilitate and assist in the- settling of claims against the society;
(f) the society shall operate on an insurance basis, that is to say,--
(i) it shall levy its premiums in respect of a period not exceeding twelve months, during which period the insured shall be held covered in respect of all accidents arising, subject to the limits of liability specified in 5[ sub- section (2) of section 95;
(ii) it shall charge premiums estimated to be sufficient, having regard to the risks, to meet the capitalised value of all claims arising during the period of cover, together with an adequate charge for expenses attaching to the issue of policies and to the settlement of claims arising thereunder;
(g) the society shall furnish to the 1[ Controller of Insurance] the returns required to be furnished by insurers under the provisions of the Insurance Act, 1938 , (4 of 1938 .) and the 1[ Controller of Insurance] may exercise in respect thereof any of the powers exercisable by him in respect of returns made to him under the said Act; 2[
(h) 3[ the society shall, in respect of any business transacted by it of the nature referred to in clause (i) of the proviso to subsection (1) of section 95, be deemed to be an insurer within the meaning of sub- section (1) of section 10 and sub- section (6) of section 13 of the Insurance Act, 1938 ; (4 of 1938 .)
(i) the provisions of the Insurance Act, 1938 , (4 of 1938 .) relating to the winding up of insurance companies shall, to the exclusion of any other law inconsistent therewith and subject to such modifications as may be prescribed, apply to the winding up of the society.]
(2) Except as provided in sub- section (1), the Insurance Act, 1938 , (4 of 1938 .) shall not apply to any co- operative society of 4[ transport vehicle] owners allowed to transact the business of an insurer under this section.