GI Council for TP motor claim settlement within 3-4 months
Mumbai: If the general insurance body, General Insurance Council, has its way, then the Third Party (TP) motor claim settlement will take place within 3-4 months from the 3-4 years as per the currently existing system.
There are two types of motor insurance covers, including own damage (OD) and third party. While TP is mandatory and is the only segment falling under the non-life insurance category which is tariffed, OD cover is as per the discretion of the owner of the vehicle.
OD claim settlement normally takes 3-4 weeks' time, whereas TP settlement, which includes hit & run related claim settlement, takes 3-4 years' time as it depends on the judgment to be delivered by the MACT (motor accident claim tribunal). The GI Council is making an all-out effort to reduce the turnaround time (TAT) of TP motor claim settlement to 3-4 months. "Motor vehicle accidents in the country per annum is around 5 lac, excluding non-reported accidents. Death toll due to accident is around 1.5 lac, whereas injury cases are 4 to 5 times to the deaths.
As part of the preventive measures, the Council has decided to educate people so that attitude of the people was changed. Moreover, it is trying to ensure that sense of discipline is imbibed.
From the insurer's perspective. The Council is trying to understand how fast to provide financial support to the victims due to motor accident. The problem was that of fake motor Insurance Policy which comprises 10 per cent of total claims. The council is also trying to ensure that safety features are installed in the vehicles, drivers' behavior to be part of pricing of motor insurance premium.
"At present average Turnaround Time (TAT) for motor OD claim settlement is 25 to 30 days, But for TP it is 3 to 4 years. Steps have been taken to reduce this TAT for TP claim within 3 to 4 months. This will be the scenario after one to two years," said Secretary of General Insurance Council. MN Sarma, while addressing an event which was held by Insurance Institute of India here recently.
Commenting on this, Satish Sahasrabudhe, senior advisor, road safety, Maharashtra government, emphasized on self-discipline. Expressing his concern over the fate of Total Loss of Vehicles, he surprised to see that how 90 per cent of discount of premium is allowed by the Insurers.
Experts are of the view that Road Safety to be a part of School Curriculum and one should maintain self-discipline. They also emphasized on enforcement of traffic rules.
Policy Data exchange between the respective State Government and the Insurance Companies is also important so that renewal of insurance to be monitored. This will check Fake Insurance Policy menace also. Once all vehicles are insured, premium loading per year will not happen.