BHUBANESWAR: The state government is set for major reforms in the insurance claims process to expedite vehicle insurance settlements and ensure swift and hassle-free compensation for accident victims.
The Commerce and Transport department has been asked to coordinate with empanelled agencies to develop a customised standard operating procedure (SOP) for uniform execution of claims.
At a high-level meeting chaired by principal secretary Usha Padhee here, it has been decided to amend the existing processes, enhance regulatory flexibility and ensure seamless claims’ disbursement.
As per section 164 of the Motor Vehicles Act, 1988, vehicle owners or authorised insurers are mandated to provide compensation of Rs 5 lakh in case of death and Rs 2.5 lakh for grievous injuries to victims or their legal heirs.
A recent assessment revealed that 59 per cent of vehicles in the state remain uninsured, leaving many vehicle owners exposed to financial risks and legal consequences. Of the 1.03 crore registered vehicles, over 61.57 lakh vehicles lack insurance coverage.
So far, five leading insurance companies - New India Assurance Co Ltd, Iffco-Tokio General Insurance, Oriental Insurance Co Ltd, United India Insurance Co Ltd, and Go Digit General Insurance - have been empanelled under the Odisha State Road Transport Corporation (OSRTC).
Sources said, Go Digit General Insurance was the primary service provider until December 2023, but New India Assurance Co Ltd and The Oriental Insurance Co Ltd have since taken over claim settlements. As per the latest data, claims worth Rs 6.77 crore have been filed, with Rs 1.45 crore already settled.
“The state government is actively monitoring the resolution of pending claims to ensure a faster settlement process,” Padhee said.
Meanwhile, the government has decided to launch Electronic Detailed Accident Report (e-DAR), an online portal developed in consultation with insurance companies. The portal will provide instant access to road accident data and help accelerate compensation claims of the families of accident victims.
The Transport department has urged vehicle owners to get insurance for their vehicles or renew their policies to avoid legal and financial complications and benefit the road accident victims.