Bhubaneswar, Mar 3 : The Odisha government has introduced key reforms to expedite vehicle insurance claim settlements, ensuring swift and hassle-free compensation for beneficiaries under the Motor Vehicles Act, 1988.
As part of its ongoing efforts to streamline the claims process, the Commerce and Transport Department has been actively coordinating with empaneled insurance agencies, benefiting vehicle owners and accident victims across the state.
Under Section 164 of the Motor Vehicles Act, 1988, vehicle owners or authorized 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.
However, a recent assessment has revealed that 59 percent of vehicles in Odisha remain uninsured, leaving many vehicle owners exposed to financial risks and legal consequences.
Of the 1.03 crore registered vehicles, over 61.57 lakh lack insurance coverage, underscoring the urgent need for increased awareness and stricter enforcement.
To accelerate insurance reforms, a high-level meeting was recently convened under the chairmanship of Principal Secretary of the Commerce & Transport Department, Usha Padhee, with representatives from various insurance companies.
The meeting focused on reforming existing processes, enhancing regulatory flexibility, and ensuring seamless claims disbursement.
Padhee emphasized the need for an efficient, citizen-friendly approach to insurance settlements and directed insurance companies to develop a customized Standard Operating Procedure (SOP) for uniform implementation.
The department will issue the final SOP to all stakeholders, ensuring greater clarity and coordination in the claims process.
To strengthen insurance accessibility, five leading insurance companies have been empaneled under the Odisha State Road Transport Corporation (OSRTC).
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, reinforcing its commitment to efficient insurance disbursement, Padhee stated.
In a significant digital initiative, the government is set to launch e-DAR (Electronic Detailed Accident Report), an online portal developed in consultation with insurance companies.
The e-DAR will provide instant access to road accident data, expediting compensation claims and offering much-needed relief to victims’ families.
The Commerce & Transport Department urges vehicle owners to renew their insurance policies promptly to avoid legal and financial complications.
Additionally, the government is actively exploring policy reforms, awareness campaigns, and accessible insurance schemes to expand insurance coverage across the state.
(UNI)
