To ensure all victims of motor accidents get compensated, the Supreme Court has suggested levy of cess on petrol and diesel sold across the country besides collection of one-time third party insurance premium on every vehicle sold.
Batting for those 20% unfortunate victims of motor accidents, involving uninsured vehicles, who fail to get any compensation, a bench headed by Justice RV Raveendran has given various suggestions for consideration by Parliament and the Central government and for implementation by the insurance companies.
Proposing compulsory third party insurance to protect unfortunate victims and reduce incidence of non-insurance, the court has suggested alternative scheme for collection of a one-time (life time) third party insurance premium, similar to life-time road tax, by a Central Insurance Agency on every vehicle sold in the country.
Besides, it said that the fund created by collection of such third party insurance can be augmented or supplemented by an appropriate road accident cess or surcharge on the price of petrol and diesel sold across the country.
?Such a hybrid model which involves collection of a fixed life time premium in regard to each vehicle plus imposition of a road accident cess may provide a more satisfactory solution in a vast country like India,? the 25-page order stated.
According to it, this model will also address grievances raised by the insurance firms that their outgoings by way of compensation in motor accident claims are four times the motor insurance premium received by them.
However, the court flayed the insurance companies? approach towards victims by saying that they fail to extend timely aid to the injured as they wait for them to file claim petitions after completing treatment at their own cost. The insurance companies continue doing so even after knowing fully well that timely payment of compensation or timely better treatment of the victims can reduce the quantum of compensation payable by them, Justice Raveendran writing the verdict for the Bench said.
Giving suggestions to the insurance companies, he said that where the liability of the insurer is undisputed, they should without waiting for the tribunal?s decision endeavour to pay compensation as per the standard formula to the family of the deceased and offer treatment at its cost to the injured. And in cases were the victim had already undergone the treatment, the insurance companies should reimburse the cost of treatment, he added. To protect and preserve the compensation awarded to the families of the deceased, special schemes should be considered by the insurance firms in consultation with the LIC, SBI or any other nationalised banks, it proposed.
Proposing the firms to formulate a scheme in consultation with nationalised banks, the apex court said that the compensation amount can be kept in a fixed deposit and the banks thereon can pay interest to claimants on monthly basis. Besides, the firms can also formulate an annuity scheme under which they can pay monthly annuity instead of lump sum amount.