New Motor Insurance law
The Union government has initiated a process to hasten the de-linking of motor insurance from The Motor Vehicle Act, 1988, by enacting a new law on the subject. The Bill in this regard is expected to be introduced during the next session of Parliament.
According to sources, the ministry of finance has sought feedback from the industry on a draft it has prepared, based on the recommendations of a committee appointed for the purpose. A new Act has been a long-pending demand of insurance companies.
The draft, among other things, proposes a cap of Rs 10 lakh on third-party compensation or on the liability arising out of death or body injury caused to a third party by any vehicle on road. It also stipulates that claims have to be filed within three years of an accident. At present, there is no such limit and neither on the amount of compensation.
source : https://business-standard.com/india/news/feedback-soughtnew-motor-insurance-law-/460922/
