Travails of the poor in seeking Insurance compensation after fatal accidents

[esteem_lover]

It is shocking and pathetic to see the state of affairs when it comes to settling accident 3rd party claims to the person who has lost his limbs(thereby his life) or the next of kin of the deceased. Here was an article in the Indian Express today.

Legal eagles or vultures? - The New Indian Express

Excerpts:

1. Lawyers demand anywhere between 20-50% of the claim as their fees. And here's why, apart from their own greed of course.

2. Cops "pimp" for lawyers when the kin of deceased or the injured party approaches them for certain documents to file in the court. The friendly cop at the accident site will also provide you with business cards of lawyers and ask you to engage them.

3. A Lawyer will "Park" anywhere between 2-5 Lakhs with such cops and the cops deduct 7k-20k per case they divert to the lawyer. Once the balance goes down below 50k, the cop alerts the lawyer about his dwindling balance and the lawyer tops up his account (with another 5L, just like the minimum balance in your bank account).

4. The peon or helper working in the morgue also has visiting cards of many lawyers in his pocket which he gives to the victims or their relatives and collects 2-3k per case from the lawyer.

5. Sometimes, a 'few' very helpful lawyers will pay 10-30k upfront to the poor victim or their kin at their time of need on the terms that the whole settlement goes to the lawyer.

6. Even private hospitals charge the lawyers for directing accident victims, even the middle class ones.\

7. Add to this the fact that the vehicles that are involved in 50% of the accidents in the city do not have insurance since the public transport is exempted by the M.V.Act. They are supposed to have their own fund set up for these needs, but the balance there is 'Nil'. It is said that app Rs.48Cr is pending settlement in the courts against the state transport corporations in TN.

All of the above are running like a well oiled machinery and no one could throw a spanner in these works. God help the poor and the afflicted in this country.

[Zed]

Thanks for this enlightening post. Makes one cringe in shame that this is the reality for the less privileged among us. I have heard first hand accounts of bereaved relatives having to shell out significant bribes at government hospitals (mostly to the bottom most level of the food chain) before having the mortal remains of the deceased 'released' from the morgue.

I was not aware that public transport vehicles are not insured to cover for damages caused to accident victims. Wonder if there are any friends of T-BHPians in our houses of representatives that could take up such automotive issues related to governance?

Lawyers and police personnel that prey on our less privileged brethren on a daily basis - I wonder how they sleep at night and what their dreams (nightmares) are like.

[selfdrive]

Thanks for sharing this article.

I guess it is not enough that we are insensitive and intolerant. Now we also prey on our own. This just sounds like a form of cannibalism, destorying the dreams, aspirations and the life of an entire family at a time.

As mentioned by Zed, how do these people sleep at night? No conscience at all, I presume they must be justifying this by saying there are bigger corrupt deeds going scot free.
Truly pathetic and deplorable state of affairs.

[apachelongbow]

Biggest cause of this travesty is the Indian Police Service. A shameful blight on our nation!!!. Morons pay and pass IPS, constable selection service because they have an assured source of secondary income (corruption) for life when they get it.

A police constable in Mumbai needs to pay upward of Rs 4 lakhs to get selected. There is a rate card for all posts.

So how can we expect these vultures to have any human values or follow their oath like provide justice, sympathy, protection, maintain law and order etc?
These vulture cops are merely interested in earning money, I am sure they would sell and eat their own family if it meant more money for them.

In India it is a misfortune or a handicap to be born penniless and powerless!!!

[revv_maniac]

Originally Posted by esteem_lover

It is shocking and pathetic to see the state of affairs when it comes to settling accident 3rd party claims to the person who has lost his limbs(thereby his life) or the next of kin of the deceased. Here was an article in the Indian Express today.

Legal eagles or vultures? - The New Indian Express

Excerpts:

1. Lawyers demand anywhere between 20-50% of the claim as their fees. And here's why, apart from their own greed of course.


All of the above are running like a well oiled machinery and no one could throw a spanner in these works. God help the poor and the afflicted in this country.

This is so true , I crashed my car in a lamp post due to pathetic handling tires of my friends accent, filed FIR and the cop said 1 million times that the advocate will take care of the claims for the medi claim for the passenger injured and forced me to apply for medi claim just 2 months back this happened.

On a different note, two of my friends riding a bike in chennai near velacherrty met with an accident by a biker who came from the opp. side (Wrong way). Both of my friends who rode it and the pillion was in a shock due to the accident and by the time the guy ran off from the place. So no one knows the bike reg. no. or anything, now the cops are saying file a case saying speeding or skid and fell down, like the pillion rider giving a case against the guy who rode the bike. The pillion got his wrist fractured and spent close to 90K INR.

The cops say its a Hit and run case and since there is no info about the guy who hit, we need to register the FIR as speeding or skid due to stones on the road etc., only then claim will be settled for the pillion. Now, why should we file anything like that ? its not our fault to not make a note of the reg. no. of the bike which hit us.

Insurance experts - kindly help, now the FIR has been filed as Hit and Run, is there any way to claim the medical bills using the insurance cover ? Which the cop and an advocate says not possible.

advice

Thank you.

[Samurai]

Who pays the legal expenses until the case is won? If the lawyer doesn't take a penny until the case is won, and if the lawyer doesn't take a penny if the case is lost, then I don't see a problem. Then it is exactly like trial law in USA. Paying the cops is the bad part, but that is secondary to the main story here.

But the lawyer's cut should be limited 1/3 and not more.

[ghodlur]

Thanks for sharing the info Esteem_lover.

This is shocking revelation to me about the cop lawyer nexus and makes my head hang in shame about the pathetic condition we live in. The common man is the ultimate sufferer. But somewhere down the line arent citizens themselves responsible for this growing menance, I mean most of the people would want a faster settlement of claims and hence fuel this nexus.

[selfdrive]

Originally Posted by noidea

On a different note, if one has to spend 90K for a wrist fracture treatment I guess the medical fraternity is also taking the poor chap for a ride. Of course, depends on the type of fracture but to me it seems to be way too much.

I have seen certain quotes go up the moment someone hears the words mediclaim or insurance.
This is also true for motor claims, try it at any workshop and you will most likely get different quotes for insurance claim and cash payment.

[esteem_lover]

Originally Posted by Zed

I was not aware that public transport vehicles are not insured to cover for damages caused to accident victims.

A related article on that

MTC drivers run amok, government fails to compensate - The New Indian Express

Getting compensation for accidents involving State transport corporation buses is not easy. For, unlike others, State transport corporation vehicles are exempt from compulsory motor insurance covers, under Sec 146(3) of the Motor Vehicles Act 1988. Under the MVA, the corporations must have a fund for paying compensation to accident victims. According to sources, the coffers are empty. The result: State transport corporations are sitting on accident claims of around Rs 48 crore.

Samurai, I feel even 1/3 is HUGE considering the loss the poor family suffers with the death or permanent disability to their bread winners. Understood that the lawyer is pumping in his money first, which is the crux of the issue here. How dare the cops and hospitals behave this way !!

[mayankjha1806]

This, although is common knowledge i.e. everyone known that such a thing happens, but still is shocking to read and hear.

Judiciary and Law enforcement has gone to shambles, they are doing everything possible under the sun to ensure that whatever faith people have in them gets eroded soon.

My heart goes out to the victims. More reasons to ensure people understand concept of road safety in this country.

[esteem_lover]

Originally Posted by Zed

I have heard first hand accounts of bereaved relatives having to shell out significant bribes at government hospitals (mostly to the bottom most level of the food chain) before having the mortal remains of the deceased 'released' from the morgue.

Yeah, me too and it was such a shame that the kin of the deceased when in their time of grief and uncertainty over their next days' meal for themselves and their kids are being fleeced. For someone else to splurge ?

Originally Posted by selfdrive

destroying the dreams, aspirations and the life of an entire family at a time.

Exactly. A mother gets seriously injured and is not able to take care of herself, needs her husband's help for everything. What torture she has to endure!! Or a man, a bread winner for the family gets incapacitated or killed, how much trouble and sorrow the family endures !! None of which matters to our police or the lawyers. For them it is a way of life, full stop.

[ashphil]

This thread was an eye opener for me.I did not know that State Transport vehicles are exempted from carrying 3rd party insurance. If they are supposed to create a fund to meet 3rd party claims and have not done so, it is only logical that this exemption be withdrawn and they be brought under insurance coverage. How any government can conduct itself in such a pathetic manner, is beyond comprehension.
The root of the problem is we , the people. We know our rights are being trampled on, we know we are putting the futures of our children at stake and yet we passively allow things to continue being the way they are.
Ashok

[patil]

Originally Posted by Samurai

Who pays the legal expenses until the case is won? If the lawyer doesn't take a penny until the case is won, and if the lawyer doesn't take a penny if the case is lost, then I don't see a problem. Then it is exactly like trial law in USA. Paying the cops is the bad part, but that is secondary to the main story here.

But the lawyer's cut should be limited 1/3 and not more.

Hi Guys,
A very intersting thread. I am a lawyer myself and I do deal with accident cases. As said by Samurai I dont charge a penny untill the claim cheque is issued to the claimant. Even after that we charge anywhere between 15 to 25 percent and not more than that.

All the expenses such as collecting the documents, filing the claim petition, conducting the case, visiting doctors, taking disablity certificate from doctors, etc, etc are borne by me only. Once the cheque is issued to the claimants we lawyers are at the mercy of the claimants to recieve our fees.

The cheques are issued in the names of the claimants only and there are many instances where the claimants have walked away with the cheques without paying my fees. I dont deny the fact that there are quite a few lawyers who dupe the claimants and charge them exhorbitantly and dont even reveal to them the actual amount of compensation awarded.

In fact in many states in India court fee upto 10 percent of the amount claimed has to be paid to the court at the time of filing of the claim petition. The claimants are not in a position to pay the same and lawyers pay it upfront and recover the same after award and payment.

I am definetely not denying the allegations made at the begining of this thread which are very much true and some people commit frauds even beyond what has been said here. However all lawyers are not alike and atleast few of them are honest and genuine.

[esteem_lover]

Originally Posted by patil

However all lawyers are not alike and atleast few of them are honest and genuine.

Very true and thanks to people like you that at least a few people really get justice. May your tribe grow and that other tribe cease to exist.

[esteem_lover]

Originally Posted by patil

In fact in many states in India court fee upto 10 percent of the amount claimed has to be paid to the court at the time of filing of the claim petition.

I find it very hard to believe this one, but if you are saying so, I do. But how can any court charge such an exhorbitant fee ? Are they also trying to make money out of a suffering family ? Even a stupid RTI application costs less than 50 rupees when the answer to it involves crores of rupees. Where is the justice here ? Does our laws favour the informed and more privileged people ?