Lok Sabha Question No. 17 (STARRED), answered on 2021-11-29
Subject: Settlement of Insurance Claims
Ministry: FINANCE
Asked by: Sukhbir Singh Jaunapuria

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## STARRED QUESTION NO. 17

TO BE ANSWERED ON MONDAY, NOVEMBER 29, 2021/AGRAHAYANA 8, 1943 (SAKA)

## SETTLEMENT OF INSURANCE CLAIMS

## †*17. SHRI SUKHBIR SINGH JAUNAPURIA:

Will the Minister of FINANCE be pleased to state:

- (a) whether any time limit has been fixed/prescribed for making payment of insurance amount to the victims/ affected families by public/private sector insurance companies in the case of injuries/death in road accidents;
- (b) if so, the details thereof;
- (c) the  details  of  the  claims  reported  by  the  Life  Insurance  Companies,  General  Insurance Companies  and  Motor  Accident  Claims  Tribunals  and  the  details  of  the  maximum  and minimum compensation paid to the families of road accident victims during each of the last five years and the current year, company-wise and Statewise;
- (d) whether the Government has taken any steps for speedy settlement of insurance claims and if so, the details thereof; and
- (e) whether the compensation amount has been increased under the New Motor Vehicles Act, if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN)

- (a) to (e): A Statement is laid on the Table of the House.

***********

## STATEMENT REFERRED TO IN THE REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO. 17 FOR 29 th  NOVEMBER, 2021, REGARDING 'SETTLEMENT OF INSURANCE CLAIMS' RAISED BY SHRI SUKHBIR SINGH JAUNAPURIA

(a) and (b): As per section 149 of the Motor Vehicle Act, 1988, upon receipt of information of an accident, the insurance company shall designate an officer to settle the claims relating to such accident, who may make an offer to the claimant for settlement before the Motor Accident Claims  Tribunal  within  thirty  days  and  if  the  claimant  accepts  such  offer,  the  Tribunal  shall make a record of such settlement and the insurance company shall make payment within 30 days from the receipt of such record of settlement, and if the claimant rejects such offer, the Tribunal shall fix date of hearing to adjudicate the claim on merits.

(c):  The  company-wise  and  State-  and  Union-territory-wise  details  of  claims  during  the previous five years, as informed by the Insurance Regulatory and Development Authority of India (IRDAI) on the basis of data submitted by insurers, are at  Annex-I. The company-wise and State- and Union-territory-wise details of maximum compensation paid to claimants under motor third party insurance during the last five financial years, as informed by IRDAI on the basis of database maintained by the Insurance Information Bureau of India,  are at Annex-II. IRDAI has further informed that details of minimum compensation paid are not maintained as the said database captures all payouts under motor third party insurance and it is not possible to  know  whether  a  particular  amount  mentioned  in  the  database  is  an  expense  or  a compensation  amount.  IRDAI  has  also  informed  that  the  data  for  the  current  year  is  not available as the same is collected and collated as on the 31 st  of March of each year.

(d): The Ministry of Road Transport and Highways has apprised that it published draft rules in August  2021  for  amending  the  Central  Motor  Vehicles  Rules,  1989,  inviting  objections  or suggestions from public. These are in pursuance of the requirement under section 212 of the Motor  Vehicles  Act,  1988  of  previous  publication  for  making  of  rules.  The  said  draft  rules envisage timeframes for, inter alia, intimation of accident by the police to the Tribunal and the insurance company, submission of documents by the vehicle owner and driver to the police, submission of an interim and a detailed accident report by the police to the Tribunal, decision by  the  insurance  company  regarding  the  compensation  payable  if  liability  is  not  disputed, acceptance of the offer by the claimant, inquiry by the Tribunal in case of non-acceptance of the offer, award by the Tribunal, and release of the award amount.

(e):  The  Motor  Vehicles  Act,  1988  was  amended  by  the  Motor  Vehicles  (Amendment)  Act, 2019 to increase  the  compensation for  hit  and  run  motor  accidents  from  Rs.  12,500  to  Rs. 50,000 in case of grievous hurt, and from Rs. 25,000 to Rs. 2,00,000 in case of death.

******

## Annexure-I referred to in the reply to part (c) of Lok Sabha Starred Question No. 17, for answer on 29.11.2021

## Insurer-wise number of motor third party insurance claims intimated/ booked

|                                                    | Claims intimated/ booked during:   | Claims intimated/ booked during:   | Claims intimated/ booked during:   | Claims intimated/ booked during:   | Claims intimated/ booked during:   |
|----------------------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|
| Insurance company                                  | FY 2020-21                         | FY 2019-20                         | FY 2018-19                         | FY 2017-18                         | FY 2016-17                         |
| Acko General Insurance Limited                     | 334                                | 254                                | 14                                 | -                                  | -                                  |
| Bajaj Allianz General Insurance Company Limited    | 12,801                             | 16,498                             | 13,846                             | 12,473                             | 11,852                             |
| Bharti Axa General Insurance Company Limited       | 3,912                              | 4,807                              | 4,045                              | 4,392                              | 5,262                              |
| Cholamandalam General Insurance Company Limited    | 10,844                             | 17,981                             | 17,142                             | 17,226                             | 16,501                             |
| Navi General Insurance Limited                     | 156                                | 139                                | 6                                  | -                                  | -                                  |
| Edelweiss General Insurance Limited                | 104                                | 123                                | 3                                  | -                                  | -                                  |
| Future Generali India Insurance Company Limited    | 2,767                              | 3,855                              | 3,473                              | 3,036                              | 3,295                              |
| Go Digit General Insurance Limited                 | 3,881                              | 3,081                              | 832                                | 26                                 |                                    |
| HDFC Ergo General insurance Company Limited        | 8,218                              | 10,928                             | 9,141                              | 11,657                             | 12,647                             |
| ICICI Lombard General Insurance Company Limited    | 17,007                             | 23,905                             | 20,903                             | 21,152                             | 25,088                             |
| IFFCO Tokio General Insurance Company Limited      | 12,884                             | 20,706                             | 18,085                             | 19,455                             | 19,776                             |
| Kotak Mahindra General Insurance Company Limited   | 383                                | 449                                | 257                                | 118                                | 30                                 |
| Liberty Videocon General Insurance Company Limited | 3,475                              | 2,618                              | 1,797                              | 1,439                              | 953                                |
| Magma HDI General Insurance Company Limited        | 2,677                              | 4,193                              | 2,681                              | 2,508                              | 2,748                              |
| Raheja QBE General Insurance Company Limited       | 332                                | 321                                | 225                                | 142                                | 35                                 |
| Reliance General Insurance Company Limited         | 9,407                              | 17,498                             | 17,473                             | 18,013                             | 20,044                             |
| Royal Sundaram Alliance Insurance Company Limited  | 5,147                              | 8,252                              | 8,104                              | 8,824                              | 8,909                              |
| SBI General Insurance Company Limited              | 5,551                              | 3,880                              | 3,115                              | 3,284                              | 4,746                              |
| Shriram General Insurance Company Limited          | 8,688                              | 15,714                             | 16,657                             | 21,002                             | 23,201                             |
| Tata AIG General Insurance Company Limited         | 9,160                              | 15,268                             | 9,866                              | 9,031                              | 8,562                              |
| Universal Sompo General Insurance Company Limited  | 2,838                              | 3,204                              | 2,845                              | 2,990                              | 1,836                              |
| The New India Assurance Company Limited            | 59,267                             | 83,563                             | 74,378                             | 77,367                             | 1,07,951                           |
| National Insurance Company Limited                 | 1,05,338                           | 88,147                             | 79,704                             | 76,805                             | 58,090                             |
| The Oriental Insurance Company Limited             | 45,079                             | 69,186                             | 66,165                             | 70,384                             | 72,510                             |
| United Insurance Company Limited                   | 48,093                             | 72,515                             | 73,772                             | 89,446                             | 93,198                             |
| Total                                              | 3,78,343                           | 4,87,085                           | 4,44,529                           | 4,70,770                           | 4,97,234                           |

Source: Insurance Regulatory and Development Authority of India

State- and Union territory-wise number of motor third party insurance claims intimated/ booked

|                                          | Claims intimated/ booked during:   | Claims intimated/ booked during:   | Claims intimated/ booked during:   | Claims intimated/ booked during:   | Claims intimated/ booked during:   |
|------------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|
| State / Union territory                  | FY 2020-21                         | FY 2019-20                         | FY 2018-19                         | FY 2017-18                         | FY 2016-17                         |
| Andhra Pradesh                           | 12,470                             | 18,308                             | 16,495                             | 19,496                             | 16,044                             |
| Arunachal Pradesh                        | 94                                 | 133                                | 142                                | 97                                 | 1,744                              |
| Assam                                    | 7,643                              | 12,808                             | 10,910                             | 10,454                             | 7,349                              |
| Bihar                                    | 8,161                              | 6,102                              | 6,308                              | 5,154                              | 6,139                              |
| Chhattisgarh                             | 5,101                              | 8,714                              | 7,765                              | 7,937                              | 7,098                              |
| Goa                                      | 410                                | 722                                | 711                                | 682                                | 1,108                              |
| Gujarat                                  | 15,575                             | 26,290                             | 27,810                             | 26,612                             | 23,592                             |
| Haryana                                  | 10,514                             | 18,167                             | 16,797                             | 15,855                             | 12,578                             |
| Himachal Pradesh                         | 1,477                              | 3,017                              | 3,088                              | 3,164                              | 2,143                              |
| Jharkhand                                | 1,887                              | 3,691                              | 3,372                              | 3,287                              | 2,488                              |
| Karnataka                                | 43,653                             | 49,375                             | 45,664                             | 48,866                             | 42,019                             |
| Kerala                                   | 52,301                             | 56,327                             | 51,093                             | 51,134                             | 34,744                             |
| Madhya Pradesh                           | 29,553                             | 35,572                             | 31,974                             | 38,946                             | 29,434                             |
| Maharashtra                              | 26,509                             | 40,315                             | 34,719                             | 38,003                             | 1,03,422                           |
| Manipur                                  | 92                                 | 210                                | 102                                | 73                                 | 764                                |
| Meghalaya                                | 86                                 | 166                                | 162                                | 214                                | 3,642                              |
| Mizoram                                  | 40                                 | 102                                | 96                                 | 85                                 | 6,708                              |
| Nagaland                                 | 146                                | 264                                | 241                                | 280                                | 171                                |
| Odisha                                   | 7,363                              | 10,399                             | 8,711                              | 10,180                             | 11,636                             |
| Punjab                                   | 3,700                              | 8,076                              | 8,174                              | 7,953                              | 7,843                              |
| Rajasthan                                | 31,695                             | 31,988                             | 28,302                             | 30,414                             | 25,522                             |
| Sikkim                                   | 486                                | 162                                | 1,538                              | 98                                 | 77                                 |
| Tamil Nadu                               | 48,036                             | 65,415                             | 61,584                             | 64,549                             | 52,590                             |
| Telangana                                | 6,345                              | 10,284                             | 8,242                              | 11,933                             | 10,715                             |
| Tripura                                  | 492                                | 836                                | 874                                | 931                                | 2,670                              |
| Uttar Pradesh                            | 35,967                             | 37,987                             | 32,282                             | 31,743                             | 25,396                             |
| Uttarakhand                              | 1,755                              | 3,343                              | 2,503                              | 2,645                              | 3,004                              |
| West Bengal                              | 15,101                             | 16,097                             | 14,049                             | 16,792                             | 16,012                             |
| Andaman and Nicobar Islands              | 49                                 | 13                                 | 16                                 | 58                                 | 36                                 |
| Chandigarh                               | 911                                | 2,095                              | 2,188                              | 2,626                              | 12,758                             |
| Dadra and Nagar Haveli and Daman and Diu | 60                                 | 135                                | 53                                 | 154                                | 697                                |
| Delhi                                    | 7,445                              | 12,266                             | 12,365                             | 14,715                             | 19,720                             |
| Jammu and Kashmir, and Ladakh            | 1,470                              | 3,075                              | 3,215                              | 3,049                              | 3,630                              |
| Lakshadweep                              | 3                                  | 818                                | 1                                  | -                                  | 226                                |
| Puducherry                               | 1,753                              | 3,813                              | 2,983                              | 2,638                              | 3,515                              |
| Total                                    | 3,78,343                           | 4,87,085                           | 4,44,529                           | 4,70,770                           | 4,97,234                           |

Source:

Insurance Regulatory and Development Authority of India

## Annexure-II referred to in the reply to part (c) of Lok Sabha Starred Question No. 17, for answer on 29.11.2021

## Maximum compensation paid to claimants (company-wise)

| Insurance company                                  | Maximum compensation paid during:   | Maximum compensation paid during:   | Maximum compensation paid during:   | Maximum compensation paid during:   | (in Rupees)   |
|----------------------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|---------------|
| Insurance company                                  | FY 2020-21                          | FY 2019-20                          | FY 2018-19                          | FY 2017-18                          | FY 2016-17    |
| Acko General Insurance Limited                     | 24,66,373                           | 20,70,000                           | 4,69,500                            | -                                   | -             |
| Bajaj Allianz General Insurance Company Limited    | 2,05,44,000                         | 1,49,66,996                         | 2,19,91,344                         | 1,94,08,113                         | 2,67,81,228   |
| Bharti Axa General Insurance Company Limited       | 1,49,98,074                         | 1,86,45,443                         | 1,13,71,767                         | 2,43,40,524                         | 1,46,18,380   |
| Cholamandalam General Insurance Company Ltd        | 1,16,52,301                         | 2,13,14,190                         | 5,62,13,750                         | 2,63,51,323                         | 2,25,82,797   |
| Edelweiss General Insurance Limited                | 32,19,950                           | 15,07,740                           | -                                   | -                                   | -             |
| Future Generali India Insurance Company Limited    | 1,81,76,165                         | 4,01,01,403                         | 1,40,12,000                         | 1,26,49,116                         | 93,91,271     |
| Go Digit General Insurance Limited                 | 50,82,340                           | 70,38,460                           | 20,04,961                           | -                                   | -             |
| HDFC Ergo General Insurance Company Limited        | 1,59,01,607                         | 1,74,52,856                         | 1,23,83,140                         | 1,45,73,619                         | 2,33,77,624   |
| ICICI Lombard General Insurance Company Limited    | 3,28,95,770                         | 3,05,25,858                         | 1,68,94,143                         | 7,00,79,360                         | 5,08,97,385   |
| IFFCO Tokio General Insurance Company Limited      | 1,40,83,869                         | 1,90,31,255                         | 1,99,68,656                         | 1,71,56,140                         | 1,65,29,412   |
| Kotak Mahindra General Insurance Company Limited   | 43,70,000                           | 32,19,992                           | 40,03,054                           | 18,82,160                           | -             |
| L&T General Insurance Co. Ltd.                     | -                                   | -                                   | -                                   | 88,87,667                           | 96,78,048     |
| Liberty Videocon General Insurance Company Limited | 94,19,100                           | 90,10,500                           | 1,18,89,674                         | 5,00,34,000                         | 65,21,900     |
| Magma HDI General Insurance Company Limited        | 90,02,790                           | 88,29,925                           | 70,17,100                           | 90,32,164                           | 79,14,001     |
| National Insurance Company Limited                 | 4,81,67,969                         | 2,58,85,919                         | 3,61,99,876                         | 11,37,48,674                        | 2,65,23,963   |
| Navi General Insurance Limited                     | 15,64,335                           | 6,77,760                            | -                                   | -                                   | -             |
| Raheja QBE General Insurance Company Limited       | 1,08,41,588                         | 50,88,831                           | 45,80,000                           | 22,29,652                           | 6,06,400      |
| Reliance General Insurance Company Limited         | 5,31,28,212                         | 3,20,81,127                         | 2,05,34,142                         | 3,36,06,926                         | 1,78,46,797   |
| Royal Sundaram Alliance Insurance Company Limited  | 1,08,91,496                         | 1,31,37,558                         | 1,81,94,927                         | 3,35,42,405                         | 1,12,27,393   |
| SBI General Insurance Company Limited              | 69,40,589                           | 1,37,11,520                         | 1,14,43,441                         | 1,30,59,801                         | 1,37,38,524   |
| Shriram General Insurance Company Limited          | 1,90,00,802                         | 1,91,10,054                         | 1,80,13,000                         | 1,26,86,729                         | 2,75,19,600   |
| Tata AIG General Insurance Company Limited         | 2,60,54,000                         | 1,68,44,397                         | 2,73,14,500                         | 1,04,18,406                         | 1,90,14,850   |
| The New India Assurance Company Limited            | 2,85,87,469                         | 15,99,85,664                        | 3,61,66,170                         | 5,78,19,428                         | 22,07,76,915  |
| The Oriental Insurance Company Limited             | 1,68,59,907                         | 2,52,76,014                         | 7,73,68,362                         | 1,88,26,874                         | 5,23,55,670   |
| United Insurance Company Limited                   | 2,56,31,802                         | 6,16,01,553                         | 2,89,49,781                         | 2,23,05,649                         | 1,97,74,226   |
| Universal Sompo General Insurance Company Limited  | 1,69,59,585                         | 97,19,216                           | 1,10,16,551                         | 71,78,678                           | 77,23,500     |
| Total                                              | 42,64,40,093                        | 57,68,34,231                        | 46,79,99,839                        | 57,98,17,408                        | 60,53,99,884  |

Source: Insurance Regulatory and Development Authority of India

## Maximum compensation paid to claimants (State- and Union territory-wise)

| State/Union territory                    | Maximum compensation paid during:   | Maximum compensation paid during:   | Maximum compensation paid during:   | Maximum compensation paid during:   | (in Rupees)   |
|------------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|---------------|
| State/Union territory                    | FY 2020-21                          | FY 2019-20                          | FY 2018-19                          | FY 2017-18                          | FY 2016-17    |
| Andaman and Nicobar Islands              | 33,52,458                           | 36,38,450                           | 36,62,765                           | 21,12,029                           | 41,78,435     |
| Andhra Pradesh                           | 1,36,04,000                         | 1,75,16,300                         | 3,61,66,170                         | 2,19,07,919                         | 3,10,89,466   |
| Arunachal Pradesh                        | 2,29,59,206                         | 1,14,48,252                         | 1,71,39,881                         | 1,02,92,100                         | 80,81,868     |
| Assam                                    | 1,22,65,764                         | 92,12,083                           | 81,34,532                           | 1,03,10,500                         | 88,34,544     |
| Bihar                                    | 1,09,62,807                         | 1,12,96,790                         | 77,59,670                           | 1,00,81,788                         | 78,93,489     |
| Chandigarh                               | 91,49,130                           | 1,26,15,574                         | 1,13,71,767                         | 79,33,937                           | 93,91,271     |
| Chhattisgarh                             | 2,11,28,783                         | 7,38,33,038                         | 2,08,47,610                         | 2,10,61,668                         | 1,07,89,720   |
| Dadra and Nagar Haveli and Daman and Diu | 68,62,855                           | 68,80,180                           | 1,51,04,933                         | 1,15,05,559                         | 80,99,836     |
| Delhi                                    | 5,31,28,212                         | 2,52,76,014                         | 7,73,68,362                         | 3,34,40,677                         | 2,33,77,624   |
| Goa                                      | 3,28,95,770                         | 2,14,14,864                         | 1,00,19,241                         | 1,07,30,196                         | 1,01,56,734   |
| Gujarat                                  | 1,81,76,165                         | 6,16,01,553                         | 2,35,21,357                         | 5,78,19,428                         | 3,59,55,790   |
| Haryana                                  | 2,59,35,618                         | 2,48,73,849                         | 2,59,70,842                         | 2,72,25,589                         | 5,08,97,385   |
| Himachal Pradesh                         | 1,68,30,809                         | 1,32,05,716                         | 1,38,81,050                         | 2,06,41,950                         | 1,98,65,203   |
| Jammu and Kashmir, and Ladakh            | 1,03,25,360                         | 1,23,87,518                         | 1,14,28,398                         | 87,41,939                           | 1,09,49,442   |
| Jharkhand                                | 2,60,54,000                         | 1,00,34,003                         | 1,00,61,385                         | 81,96,371                           | 82,64,196     |
| Karnataka                                | 2,61,86,001                         | 4,01,01,403                         | 3,61,99,876                         | 1,40,22,600                         | 1,19,76,083   |
| Kerala                                   | 2,07,39,539                         | 4,01,72,502                         | 1,70,44,088                         | 1,23,14,501                         | 2,59,41,770   |
| Lakshadweep                              | 0                                   | 36,72,254                           | 12,71,841                           | 14,21,024                           | 12,97,207     |
| Madhya Pradesh                           | 1,42,97,413                         | 2,20,42,397                         | 1,39,37,707                         | 1,46,87,672                         | 1,37,09,419   |
| Maharashtra                              | 1,69,59,585                         | 15,99,85,664                        | 3,09,94,279                         | 4,68,91,258                         | 3,00,48,161   |
| Manipur                                  | 21,36,011                           | 45,16,000                           | 34,88,151                           | 55,61,106                           | 32,62,466     |
| Meghalaya                                | 41,10,998                           | 81,22,621                           | 64,02,633                           | 40,70,624                           | 28,18,713     |
| Mizoram                                  | 90,70,865                           | 81,47,928                           | 1,08,90,552                         | 58,75,778                           | 26,05,521     |
| Nagaland                                 | 1,27,11,247                         | 89,86,196                           | 1,61,31,935                         | 61,55,281                           | 2,21,68,215   |
| Odisha                                   | 1,31,36,084                         | 1,74,52,856                         | 1,70,12,362                         | 80,63,985                           | 5,23,55,670   |
| Puducherry                               | 92,71,411                           | 8,39,00,777                         | 1,11,87,514                         | 1,14,75,001                         | 1,10,16,080   |
| Punjab                                   | 2,33,74,974                         | 1,28,39,097                         | 1,28,31,047                         | 7,00,79,360                         | 22,07,76,915  |
| Rajasthan                                | 1,54,29,160                         | 1,57,18,629                         | 5,62,13,750                         | 1,71,80,692                         | 2,75,19,600   |
| Sikkim                                   | 34,32,305                           | 57,24,182                           | 49,85,276                           | 1,39,41,020                         | 50,77,846     |
| Tamil Nadu                               | 2,85,87,469                         | 2,01,16,388                         | 3,39,49,406                         | 5,00,34,000                         | 2,72,40,268   |
| Telangana                                | 2,80,82,573                         | 6,75,96,664                         | 2,19,91,344                         | 1,29,92,575                         | 1,90,14,850   |
| Tripura                                  | 73,15,141                           | 1,24,42,153                         | 49,31,780                           | 51,35,080                           | 56,82,960     |
| Uttar Pradesh                            | 2,56,31,802                         | 2,07,38,834                         | 2,64,52,880                         | 1,66,70,400                         | 1,00,90,187   |
| Uttarakhand                              | 1,62,97,450                         | 1,99,84,700                         | 1,71,70,679                         | 1,19,20,593                         | 1,65,29,412   |
| West Bengal                              | 1,29,57,184                         | 1,53,06,996                         | 2,37,69,272                         | 11,37,48,674                        | 2,65,23,963   |
| Total                                    | 57,33,58,149                        | 90,28,02,426                        | 65,92,94,335                        | 70,42,42,874                        | 78,34,80,308  |

Source: Insurance Regulatory and Development Authority of India