Lok Adalat on third party claims from Aug 6

The first-ever Lok Adalat in south India to settle the pending motor accident claim cases will be held at Kochi on Augut 6. The General Insurers Public Sector Association (GIPSA), the common platform of the public-sector general insurance companies had devised this scheme for the speedy settlement of motor third party claims.

The insurers part of GIPSA are United India Insurance, New India Assurance, Oriental Insurance and National Insurance. Long pending cases in which the claim amount is up to Rs 10 lakh would be considered in the adalat.

TK Haridasan, regional manager, United India Insurance Company, said the common mechanism for compromised settlement of motor third party claims (CMCSTPC) was being introduced in the state with the association of the Kerala State Legal Service Authority.

 

Cases involving arbitration only about the claim amount will be considered under the new scheme. According to sources, more than 400 cases are expected to be settled in the Adalat. In continuation, there will be sitting of the Adalat every month and a senior officer of the insurance company will coordinate the sitting.

The new scheme is aimed at eliminating delays in settling claims. A committee consisting of a retired district judge, a retired senior medical officer (Orthopeadics) and a retired senior officer from a public sector insurance company would decide the quantum of compensation to be paid.

Cases agreed for settlement will be placed before the Lok Adalat constituted for the purpose, and once settled, the payment is effected within 30 days. The insurer would remit the amount with the Motor Accident Claims Tribunals (MACT) and then released to the claimant.

With an average waiting period of 3-5 years, approaching MACTs has been a serious problem for the victims of road accidents. In Ernakulam district alone, more than 5,000 cases are pending with MACTs. As the road accident rate is higher in Kerala compared to the national average, the claim ratio in the state is more than 150 per cent -- the highest in India.

This is the second national-level launch of the scheme, after a successful debut at Bhubaneswar. The state-level inauguration of the scheme will be done by Justice C N Ramachandran Nair of the Kerala High Court at Ashir Bhavan here on Saturday.