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Last year, film stars like Salman Khan and Puru Raj Kumar drove their vehicles over sleeping pavement dwellers under the influence of liquor. Innocent Lives faced the wrath The criminals continued to walk unaffected in broad daylight. Reason- Existing ineffective laws.
The India's National Insurance Academy has made certain suggestions. It has introduced four preventive measures and three retrospective tools to tackle the problems regarding fraudulent third-party motor claims.
The Motor Insurance of India has been very adversely affected on account of bogus third-party motor claims in collaboration with corrupt surveyors and insurance company employees. Private insurers have resolved the problem in a way by refusing to accept motor insurance claims from customers with poor road-safety records, in contrast to the four government-owned general insurers which on an average paid out third-party motor claims running to between 200% and 300% of premiums collected.
The National Insurance Academy (NIA) has devised a "scientific method" that would facilitate insurers and tackle these third party motor claims. The NIA method is based on seven processes, four preventive and three retrospective tools.
Preventive tools brought about are:
Retrospective tools that to be implied are;
However, these methods are still awaiting adoption as motor third party continues to be the subject of heated discussion after detariffing.
Apart from the need to deal with fraudulent motor claims, the Insurance Regulatory and Development Authority (IRDA) has also found it necessary to train the scanner on drivers who are habitual offenders, with a view to hiking the insurance premiums steeply on the vehicles they drive.
Nitin Dossa, the Chief Executive Chairman of Western India Automobile Association states that the high premiums that levied due to repeated offences would prove a warning to habitual offenders. A major reason why people respect traffic rules abroad is that they are fined as per the the number of offences committed.
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