Common forum for insurance claims a boon

The common mechanism for settlement of motor third party claims initiated by PSU insurance companies – National Insurance, New India Assurance, Oriental Insurance and United India Insurance – has been able to settle claims of about 85 cases in Kolkata.

The Executive Committee of the Conciliatory Forum examined close to 132 cases during three sessions of hearing held between March 10 and 24, 2012.

The report based on observations of retired district judge Mr Bishnupriya Dasgupta, a member of the executive committee, will be submitted to either the Lok Adalat or Tribunal for speedy disposal of claims.

“In case of a regular court, the settlement of claims takes about 4-5 years, whereas here it can be as quick as a few months,” said Mr S. Sen, regional manager, United India Assurance Company.

FASTER REDRESS

General insurance companies had recently set up common centres for settlement of motor third party claims to seek faster redress of third party motor claims on a mutual basis between the insurance companies and accident victims and their kin.

The four PSUs underwrite nearly 70 per cent of the third party motor claims in the Indian market. The move will not only help speed up the process of claim settlement, but will also help bring down losses of insurers.

“A claim which is settled through regular court leads to about 40 per cent rise in final claim payable by the insurer due to addition of interest cost. This is not likely to happen under this mechanism,” Mr Sen said.

http://www.thehindubusinessline.com/industry-and-economy/banking/article3223156.ece?ref=wl_industry-and-economy