The Madras High Court’s observation that the Insurance Regulatory and Development Authority should make lifetime vehicle insurance mandatory has brought into focus a host of problems vehicle owners face.
The court had asked if there is any mechanism to verify whether a policy premium is being paid promptly and if vehicles without renewal of policy are being seized. It also asked the authorities to suggest measures to ensure foolproof insurance coverage of every vehicle, point out those handling motor vehicle claims cases.
A major problem vehicle owners face is the absence of timely intimation by some insurance companies about the validity of annual policies and the need for their renewal. This notice is not sent uniformly and it varied from branch to branch. Worse are the cases of owners who are clueless about where the premium has to be paid. This is because agents collect the premium sum. Not all insurance companies give the local office address. The policy conditions are not in the local language and they are in fine print. Though the premium could be paid over internet, not all, particularly those in the rural areas, could be expected to have a computer facility at home, says V.S.Suresh, an advocate.
Many purchase new vehicles under the ‘exchange offer’ made by automobile companies, particularly during festivals and New Year season. In such cases, rarely do dealers take prompt steps to make necessary changes in registration and insurance policies. Instances are not wanting where insurance companies ring up the original owners about the need for renewal of policies even after the vehicles concerned had been sold long ago. Some private insurance companies are reluctant to provide policy cover for old vehicles as they do not make business sense. Generally, there is a lack of awareness about insurance coverage, the advocate says.
Families of victims of accidents caused by non-insured vehicles suffer the most as is evident from a recent instance in the city. The charge sheet did not mention the absence of insurance. Suspecting something amiss, the victim family’s counsel sought information under the RTI Act, only to be told by police that the vehicle did not have insurance cover
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