October 29, 2017:
Compulsory Personal Accident Cover was fixed at Rs one lakh fifteen year ago in 2002.
Madras HC has directed Insurance Regulatory Development Authority of India (IRDA) to enhance compensation under Compulsory Personal Accident Cover (CPAC) from existing Rs 1 lakh to at least Rs 15 lakh.
Madras HC’s Division Bench comprising of Justice R Subbiah and Justice AD Jagadish Chandira gave direction while allowing an appeal from United India Insurance Company Limited.
HC pointed out that Policy to compensate the owner of vehicle by virtue of the CPAC had been fixed at Rs 1 lakh in the year 2002.
Sum might be sufficient to meet medical expenses to certain extent, then but now after 15 years had lapsed and cost of the medical treatment has sky-rocketed.
If the owner of vehicle himself sustains bodily injury or dies in an accident not involving another motor vehicle, due to his or her own negligence, owner of vehicle or his or her family members will not get compensation befitting actual pecuniary loss of deceased or injured, but only a lump sum compensation of Rs 1 lakh.
High Court points out that is unfortunate that owner of the vehicle, who pays premium amount for risks that may be confronted by third party or due to any other factor, is not getting the adequate compensation in event of his or her death or the bodily injury.
Thus Madras HC taking into the consideration cost of living, particularly cost of the medical treatment, directed IRDA to enhance Compulsory Personal Accident Cover from existing Rs 1 lakh to at least Rs 15 lakh, so that amount will add some succour or solace to victims of the road accidents.
Bench has directed IRDA to enhance CPAC to Rs 15 lakh after consultation with all the stakeholders within six months.
Source New Indian Express
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- Motor Vehicles Act,1988
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