Lok Sabha Question No. 4015 (UNSTARRED), answered on 2016-12-09
Subject: Road Accident Insurance Claims
Ministry: FINANCE
Asked by: GAURAV GOGOI, JYOTIRADITYA MADHAVRAO SCINDIA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 4015

TO BE ANSWERED ON 9 th  December, 2016/Agrahayana 18, 1938 (Saka)

## Road Accident Insurance Claims

4015. SHRI GAURAV GOGOI: SHRI JYOTIRADITYA M. SCINDIA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware that a large number of insurance claims of road victims with the public sector non-life insurance companies are pending;
- (b) if  so,  the  details  thereof  and  the  total  amount  disbursed/pending  by  the  such insurance companies during the last three years towards road accidents claim, year/ company-wise; and
- (c) the  steps  proposed  to  be  taken  by  the  Government  to  direct  these  insurance companies to clear the backlog of pending claims?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a)  to  (c):  Yes,  Madam.  As  per  the  Insurance  Regulatory  and  Development  Authority  of India's (Protection of Policyholders interest) Regulations 2002, the Authority has prescribed time  limits  for  resolution  of  insurance  claims.  However,  due  to  the  nature  of  Motor  Third Party  Liability,  the  resolution  is  generally  through  the  courts  of  law.  The  motor  insurance claims  data  (paid  and  outstanding)  furnished  by  Insurance  Regulatory  and  Development Authority of India (IRDAI) is annexed.

Section  140  of  Motor  Vehicle  Act,  1988,  defines  that  the  liability  to  pay  compensation  in certain cases can be discharged on the basis of the principle of no fault (i.e. the claimant involved in a motor vehicle accident is not required to prove wrongful act, neglect or default on  the  part  of  the  owner  of  the  vehicle  or  by  any  other  person).  Based  on  this  principle, many cases get settled quickly. Also, wherever liability is clean and undisputable, resolution through Lok Adalat and out of court settlements by Insurers is encouraged to reduce the time  involved  in  settlements.  Further,  Section  165  of  the  Motor  Vehicles  Act,  1988, empowers  State  Government  to  constitute,  by  notification  in  the  Official  Gazette,  one  or more Motor Accidents Claims Tribunals (MACT) for such area as may be specified in the notification  for  the  purpose  of  adjudicating  upon  claims  for  compensation  in  respect  of accidents involving the death of, or bodily injury to persons arising out of the use of motor vehicles, or damages to any property of a third party so arising, or both.

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## Annexure referred to in reply to Lok Sabha Un-Starred Question Number 4015 for 09.12.2016

| Insurer                        | F.Y      | Claims paid       | Claims paid   | Claims paid   | Claims paid   | Claims paid   | Claims paid   | Outstanding claims   | Outstanding claims   | Outstanding claims   | Outstanding claims   | Outstanding claims   | Outstanding claims   |
|--------------------------------|----------|-------------------|---------------|---------------|---------------|---------------|---------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|
|                                |          | Motor OD          | Motor OD      | Motor TP      | Motor TP      | Total Motor   | Total Motor   | Motor OD             | Motor OD             | Motor TP             | Motor TP             | Total Motor          | Total Motor          |
|                                |          | Number            | Amount        | Number        | Amount        | Number        | Amount        | Number               | Amount               | Number               | Amount               | Number               | Amount               |
| National Insurance Co. Ltd     | 2015- 16 | 6,10,126 1,51,303 | 55,098        |               | 1,60,265      | 6,65,224      | 3,11,568      | 2,60,745             | 1,77,120             | 4,81,754             | 10,17,499            | 7,42,499             | 11,94,619            |
|                                | 2014- 15 | 6,08,188          | 1,38,071      | 72,039        | 1,44,640      | 6,80,227      | 2,82,711      | 64,097               | 33,250               | 2,39,380             | 4,61,831             | 3,03,477             | 4,95,081             |
|                                | 2013- 14 | 6,01,447          | 1,27,851      | 58,188        | 1,24,917      | 6,59,635      | 2,52,768      | 72,289               | 43,512               | 1,67,812             | 2,86,397             | 2,40,101             | 3,29,909             |
| New India Assurance Co. Ltd.   | 2015- 16 | 8,32,645          | 2,05,864      | 1,26,412      | 1,99,224      | 9,59,057      | 4,05,088      | 2,61,241             | 1,30,382             | 7,38,421             | 14,94,689            | 9,99,662             | 16,25,071            |
|                                | 2014- 15 | 6,29,055          | 1,75,731      | 1,08,014      | 1,89,194      | 7,37,069      | 3,64,925      | 66,153               | 44,895               | 1,62,455             | 3,19,821             | 2,28,608             | 3,64,715             |
|                                | 2013- 14 | 5,87,164          | 1,26,367      | 1,54,020      | 1,58,873      | 7,41,184      | 2,85,240      | 32,356               | 24,498               | 1,83,701             | 4,16,979             | 2,16,057             | 4,41,476             |
| Oriental Insurance Co.Ltd.     | 2015- 16 | 3,36,424          | 75,736        | 75,006        | 1,33,409      | 4,11,430      | 2,09,145      | 1,81,275             | 1,14,926             | 4,38,103             | 10,11,456            | 6,19,378             | 11,26,382            |
|                                | 2014- 15 | 2,80,147          | 60,821        | 81,576        | 1,25,887      | 3,61,723      | 1,86,708      | 43,592               | 32,775               | 1,47,177             | 3,19,773             | 1,90,769             | 3,52,549             |
|                                | 2013- 14 | 2,48,294          | 54,801        | 91,735        | 1,16,912      | 3,40,029      | 1,71,714      | 39,739               | 29,848               | 1,58,707             | 3,06,615             | 1,98,446             | 3,36,463             |
| United India Insurance Co. Ltd | 2015- 16 | 2,76,893          | 1,08,721      | 65,346        | 1,93,414      | 3,42,239      | 3,02,136      | 1,58,962             | 1,34,981             | 6,00,213             | 21,88,644            | 7,59,175             | 23,23,624            |
|                                | 2014- 15 | 2,56,159 91,028   |               | 1,03,251      | 1,62,086      | 3,59,410      | 2,53,114      | 44,676               | 36,852               | 1,87,997             | 6,92,499             | 2,32,673             | 7,29,351             |
|                                | 2013- 14 | 2,65,261          | 78,993        | 73,320        | 1,41,795      | 3,38,581      | 2,20,787      | 46,598               | 31,075               | 1,88,126             | 6,68,634             | 2,34,724             | 6,99,709             |

(Amount in Lakhs)