Four public sector Insurance companies recently launched a Common Mechanism for Compromise Settlement of Motor Third Party Claims centre recently, with plans to open 50 such centres all over India this year to reduce pendency of Motor Accident cases and ensure speedier Â settlement. The Kochi centre was inaugurated by Kerala High Court judge Justice Ramachandran Nair.
This is the second centre in India. Already about 200 cases had been settled by noon today, Mr G Srinivasan, Chairman and Managing Director, United India Insurance Company Ltd told reporters here.
A similar centre was opened in Cuttack in Eastern region in March 2011 and Rs 2.93 crore disbursed as settlement so far. Two other pilot centres would be opened at Mehsana and Jaipur, Mr Srinivasan, also chairman of GIPSA (General Insurersâ€™ Public Sector Association) said.
â€œIndia is considered the worldâ€™s accident capital and has overtaken China in rate of accidents. About 1.2 lakh fatalities take place and this was a matter of concern,â€ he said.
Pointing out that 50 per cent of vehicles plying on roads are uninsured, Mr Srinivasan said police and authorities should take note of it. Insurance industry has been impressing on various authorities for a stringent system to issue licenses to drivers, making seat belts and wearing helmets mandatory.
The industry was facing losses in third party insurance, he said, adding the average time for settling compensation is four to five years.
Presently, over 10 lakh accident cases are pending against these four insurance companies – National Insurance Company Ltd, New India Assurance Company Ltd, Oriental Insurance Company Ltd and United India Insurance Company Ltd before various tribunals in the country, of which 1 lakh are in Kerala.
After liberalisation, private Insurance sector gained. But the market had stablised since the last three years and PSU insurance firms have done well. â€œThere is lot of trust in government companiesâ€, he said.
Mr Srinivasan said the general insurance market is growing at more than 20 per cent and that companies are confident of maintaining the current growth rate