|4th October 2012, 08:43||#1|
Senior - BHPian
Join Date: Sep 2009
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FM to cap the Third party liability, IRDA supports
There was an article in the newspaper where the Finance Minister is planning to do away with the present unlimited Third Party liability and put a cap of Rs 10 Lakh. This is mainly because of the Insurer lobby which is running into losses owing to the unlimited TPL presently available. This is a serious blow to the motor insurance buyers although it is not yet clear who would pay the excess of Rs 10L liability in case of any TPL claims.
Also proposed is the time limit for the claims reporting arising out of motor insurance which at present is un limited, there is a proposal to limit it to a max of three years. So any reporting of claims beyond 3 years will not be entertained by Insuracne companies.
More details in the link below.
What do the BHPians feel about this?
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|4th October 2012, 10:37||#2|
Senior - BHPian
Join Date: Jan 2012
Thanked: 697 Times
Re: FM to cap the Third party liability, IRDA supports
Pure and simple it is a financial decision by the insurance companies. However, we also need to remember that the insurance companies will raise rates if they consistently keep losing money on third party deals.
The idea of limiting a claim to three years is something that gets complicated. In its purest sense it really shouldn't take more than a few months at most for an insurance case to be filed. Also, the longer a case takes to file, the more chance there is of people forgetting events. On the other hand, denying justice because of a time delay is another issue entirely.