Justice C.N. Ramachandran Nair of the Kerala High Court will on Saturday inaugurate the new State-level scheme devised by four public-sector general insurance companies for the speedy settlement of third-party motor claims.

Mr T.K. Haridasan, Regional Manager of United India Insurance Co, said the Common Mechanism for Compromised Settlement of Motor TP Claims (CMCSTPC) is being introduced in Kerala with the assistance of the Kerala State Legal Service Authority. The scheme is meant to reduce delays in settling motor vehicle third-party claims.

A committee comprising a retired district judge, a retired senior medical officer (Orthopaedics) and a retired senior officer from a public sector insurance company would decide the quantum of compensation to be paid. Cases agreed for settlement would be placed before a Lok Adalat constituted for the purpose and recorded as settled, after which the payment would be effected within 30 days.

Compensation cases

According to Mr Haridasan, more than 10 lakh compensation cases arising out of road accidents are currently pending before various tribunals countrywide and the figure is increasing each year. As the average time for adjudication is 3 to 5 years, the pendency of cases continues to increase.

The member companies of General Insurance Public Sector Association (GIPSA) decided to evolve a common mechanism for compromise settlement for expeditious disposal of cases in which a public sector general insurance company is a party, he said.

The scheme was first launched in Bhubaneswar. After Kochi, it would be launched in Mehsana, Gujarat, and Jaipur, Rajasthan, on a pilot basis. Depending on the success at these four centres, more centres would be set up in various parts of the country, he added.

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