General insurance companies have asked the ministry of road transport and highways to set-up a time limit of one year for filing claims under motor third party policies. Presently, there is no such time limit for submission of claims and the victim can make a claim after any number of years.
Addressing the issue, Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance expressed concern over the rise in number of claims made after 3-5 years. As an industry, insurers have sought out a time limit for filing such claims, he further added.
The current norms of the motor vehicles act have neither a limit on the liability of the insurer nor a limit on the time to submit a claim. Consequently, the victim can claim after any number of years and if not compensated, he/she can approach the court.
A revised version of the road transport and safety bill has a proposal for fixed compensation but there is no mention of the time limit in the proposal. Presently, no vehicle can ply on Indian roads without a third party insurance and with recent revision penalty for driving without insurance has been increased manifold.