The Motor Vehicles (Amendment) Bill, 2016 going to pass in loksabha , that restricts libility to pay compensation to maximum Rs.10 lakh in case of deceased and Rs. 5 lakh in case of injured towards third party claims by insurance companies.
Current poisition :-Insurance companies getting premium for risk of owner for unlimited liability of third party .Iinsurance company have to pay compensation according to age and income of deceased who died due to accident ,who covers under third party claims to heirs of deceased.thats called unlimited liability towards third party . (first and second party are driver and owner of vehicle )
Insurance companies abusing poor law proceudres every time ,not settling cases via compromise as facilitates by court to settle cases even reducing claim amount more than 50 %.Secondly lawyers of insurance companies never give even presence to court that leads to too much delay in court cases . the requirment is to take actions agains their irresponsible behaviour against public . Gov. working totally opposit to public interest.
Now Gov. going to pass bill of motor vehicle bill where limiting third party claims compensation to Rs.10 lakh , which lead to huge profit to insurance company.Excess Of Rs.10 lakh compensation burdon on owner of vehicle.
Example:- a young man died in accident and covering in defination of third party if earning about 3000 per month , his heirs will get nearly 10 lakh excluding interest of 9%.
Now see if person earns 3000 their heirs gets 10 lakh as we know even carpenter and labours are getting minimum 500 per day that comes to Rs.15000/- per month .
so Result of this bill if mr. ambani dies ,His heirs will get only Rs. 10 lakh Hahahah what a joke !!
This bill is totally fevourable for getting huge profit for insurance companies, awarness is required in public.