Changes on the horizon

The Road Transport and Safety Bill that will replace the Motor Vehicles Act, is set to be tabled in Parliament in its current session. Third-party motor insurance is expected to undergo significant changes once the Bill is passed by Parliament. Business Standard lists the areas in which insurance customers will be impacted

HIGHER COMPENSATION FOR HIT-AND-RUN CASES

In a hit-and-run cases (where the vehicle that caused the incident is not traceable), insurance companies shall pay in accordance with the provisions of this Act and the scheme, compensation in respect of the death of, or grievous hurt to, persons resulting from such accidents.

TREATMENT OF ROAD ACCIDENT VICTIMS DURING THE 'GOLDEN HOUR'

Insurance companies have to provide for treatment of road accident victims during the 'golden hour' (within one hour of the accident). Further, the central government may, by notification, make a scheme for cashless treatment of victims of road accidents during the 'golden hour', including by way of creating a fund for such treatment

PAYMENT WITHIN A MONTH

Where the claimant or claimants, as the case may be, accept such an offer that has been filed by the insurance company, the payment shall be made by the insurance company within up to a period of 30 days from the date of receipt of such record

HIGHER LIABILITY ON INDIVIDUALS

If the amount which an insurer becomes liable to pay under this section in respect of a liability incurred by a person insured by a policy exceeds, the insurer will be liable for the amount. The insurer shall be entitled to recover the excess from that person

TRANSFER OF INSURANCE

Where a person in whose name the insurance has been issued, transfers it to another person, the ownership of the vehicle in respect of which such insurance was taken together with the policy of insurance relating thereto, the certificate of insurance will be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred