The Supreme Court yesterday ordered all states to amend Motor Accident Claims Tribunal (MACT) rules to make it mandatory to auction uninsured vehicles involved in an accident and transmit the proceeds to the victim or his beneficiaries.
The court directed all the states to implement the rule within 12 weeks. Currently this rule is applicable only in Delhi, reports Zee News.
The MACT awards compensation to beneficiaries after determining issues like income of the deceased, the deduction to be made towards personal living expenses, and the multiplier to be applied with reference to the age of the deceased.
Last month, the IRDAI made long-term third party insurance policy mandatory following a Supreme Court order requiring all general insurance companies to issue a three-year third party (TP) insurance cover for new cars and five-year TP insurance cover for new two-wheelers as a separate product or as part of a comprehensive insurance product.
IRDAI said that after the introduction of long-term motor TP insurance, an insured should be given two options -- long-term package cover offering both motor TP insurance and own damage insurance for three years or five years as the case may be or a bundled cover with a 3/5 year term for the TP liability component and a one-year term for own damage cover.
Regulator looking into telematics for motor insurance
Meanwhile, IRDAI chairman Subhash Khuntia has said that the regulator is going through a report on telematics, that is expected to be finalised by next March, with the technology expected to motivate drivers to drive better.
Currently, motor insurance in India is being priced based on parameters, such as the model of the vehicle, capacity, and geographical use, reports ENS. But in actuality, there are various other parameters to be considered in the assessment of risks that a vehicle is exposed to, such as upkeep of the vehicle, how frequently it is driven, what distance it is driven for, the quality of roads it is driven, the driving habits of driver and so on.
Consideration of these factors will lead to a more meaningful risk assessment and provide a more accurate mechanism for pricing, said Mr Khuntia.