Hike personal accident cover: HC
High Court says amount awarded in motor accident cases paltry
Wondering how compulsory personal accident cover for those who pay insurance premium could be restricted to just Rs. 1 lakh in case of two-wheelers and Rs. 2 lakh in case of four-wheelers, the Madras High Court has directed the Insurance Regulatory and Development Authority (IRDA) to consider raising the quantum to Rs. 15 lakh.
Justices R. Subbiah and A.D. Jagadish Chandira issued the direction while partly allowing an appeal preferred by an insurance company, challenging the award of Rs. 51.37 lakh by a motor accidents claims tribunal in Neyveli to the family of a motorist who died in a road accident. The judges ordered that the family was entitled to only Rs. 1 lakh.
Pointing out that the accident occurred without the intervention of any other vehicle on the road, the judges said that in such cases, the families of the victims would be entitled only to the amount covered under personal accident cover and not the third party insurance cover which was usually on the higher side.
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