Increase funds in State Transport Corporations to compensate accident victims: CAG

The report revealed that of the liability of Rs 435.07 crore as compensation, the state Transport Corporations had paid Rs 207.72 crore.

Published: 23rd July 2017 12:13 PM  |   Last Updated: 23rd July 2017 12:13 PM   |  A+A-

By PTI

CHENNAI: The Comptroller and Audit General (CAG) has recommended an increase in funds for state Transport Corporations to meet the claims of accident victims.

Stating that Section 146 of Motor Vehicles Act exempts STCs, provided that they maintain a minimum insurance of Rs 20 lakh to pay accident victims, the CAG said, "The government created a corpus fund of Rs 20 crore in July 2010 to meet the need for compensation of accident victims subject to maintenance of similar amount by the Corporation."

The report revealed that of the liability of Rs 435.07 crore as compensation, the state Transport Corporations had paid Rs 207.72 crore.

"But at the end of March 2016, a corpus of Rs 59.10 crore alone was available.. Due to the insufficient corpus, there was a delay in settling claims of accident victims," it said.

The report recommended that the government take up action to increase the corpus fund in STCs every year in order to meet the claim of accident compensation.

"The government and the State Transport Corporations may provide for disbursement of the entire amount of undisputed claim of compensation," it added.

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