Financial Daily from THE HINDU group of publications
Friday, Apr 09, 2004
Financial Daily from THE HINDU group of publications Friday, Apr 09, 2004 |
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Money & Banking
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General Insurance Insurers avoid TPI cover, charges consumer body Our Bureau
Coimbatore , April 8 DESPITE the mandatory provision in the Motor Vehicles Act for having an unlimited third party insurance cover for vehicles plying on the roads, non-life insurance companies refuse to accept such a cover. When compelled, they resort to unfair and unethical practices, alleges the Coimbatore Consumer Cause (CCC). Stuck with a number of complaints from the public and the poor response to their repeated reminders to the insurance regulatory authority - IRDA, CCC has now drawn the attention of the Secretary to the Government, Highways and Road Transport Department, Department of Administrative Reforms and Public Grievances at the Centre and the State's Home Department to initiate immediate action and sort out the issue. According to the CCC Secretary, Mr K. Kathirmathiyon, complaints keep pouring every day about the general insurance companies refusing to accept `third party insurance' (TPI), even while Section 146 of the Motor Vehicles Act states that no vehicle of the public could be allowed to ply on the road without a valid TPI cover. The refusal to accept a TPI cover by these companies has led many to believe that the statutory TPI cover had become optional. If a vehicle owner insisted on a TPI, hefty premiums were collected in the name of `extra loading', Mr Kathirmathiyon contended.
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