Bhubaneswar, Oct. 5: Commuters who depend on state-owned buses do so at huge risks with most of the vehicles running without insurance cover, an internal report by the government has revealed.

The Odisha State Road Transport Corporation (OSRTC) owns 461 buses. But, official sources revealed that as many as 294 buses did not have insurance cover. However, the corporation has insured all 51 buses that ply in the state's Maoist-affected areas.

Under Section 146 of the Motor Vehicles Act, 1988, it is illegal to use a vehicle in a public place without insurance. However, not only do majority of government buses not have insurance covers, several others which have become too old are yet to be disposed of. According to guidelines, a bus that completes nine years of service should be taken off the road. An official audit report on the fitness of buses revealed that as of March, 2015, the OSRTC had 150 buses that have outlived their service life by up to six years. The disposal of buses was delayed by 10 months to 53 months. Officials claimed that the buses could not be replaced because of lack of funds.

Odisha Private Bus Owners' Association secretary Debendra Sahu said: "Even though our buses have met all fitness parameters, we face the wrath of the state transport department. Our bus owners have been booked without any fault. But no steps are taken against government buses."

The private bus owners had threatened an agitation from October 7 to protest against the arrest of a bus owner. But the decision was withdrawn following talks with the government.

OSRTC general manager S.K. Patel said he would examine the issue. Dillip Upadhaya, OSRTC's deputy general manager (technical) told The Telegraph: "Earlier, we had noticed that the corporation had to pay large sums as premium to insurance companies for accident coverage. This is the reason we have not insured the buses. Under a special provision, we had availed exemption from the state government to run buses without insurance coverage."

Upadhaya, however, added: "But, we have made some changes recently. After the Maoist threat turned into a major law and order problem and the risk to passengers increased over the years, we have started taking insurance cover recently. It will be extended to other buses as well."