New Delhi: The Supreme Court has asked the central government to consider withdrawing the insurance exemption for 1.5 lakh buses owned by it. State Road Transport Corporation (SRTCs), plunged into heavy losses, as the victims and injured in accidents involving these buses have to wait for years to get compensation from government-run corporations.
This was one of the key issues before a bench of Justices Sanjay K Kaul and Hrishikesh Roy, which has been engaged in streamlining the process of speedy disbursement of compensation to the victims or injured for the past six months. Motor Accident Claims Tribunal (MACT). The bench has entrusted Additional Solicitor General Jayant Sood with the task of analyzing the difficulties, formulating innovative solutions in coordination/consultation with the states and making the assessment to the court for issuing directions for pan-India implementation.
During the hearing on the issue last week, a bench headed by Justice Kaul said, state transport corporation are not insured because of the exemptions provided and as a result, compensation is not paid for a long time as most of these corporations are running into losses”.
It has been reported by the Union Ministry of Transport and Highways that out of 56 SRTUs, 49 have suffered damages. The top five loss-making SRTUs during 2016-17 were Delhi Transport Corporation (Rs 3,832 crore); Kerala SRTC (Rs 1,771 crore); Best Undertaking (Rs 990 crore); Telangana SRTC (Rs 749 crore) and Haryana ST (Rs 598 crore). These five accounted for about 69% of the total loss by SRTUs. .
“Indeed, there are several instances where vehicles were to be attached for extortion from SRTUs for making payment to the claimants,” the bench said. The SC again fell back on the ASG “to examine the possibility of withdrawing the exemption (from insurance for SRTU buses) or for a mechanism to ensure that these corporations have the funds to meet their liabilities.” Adequate fund pool is available (in motor accidents involving SRTU buses) towards the claimants.
Sood informed the court that efforts to streamline the process of speedy payment of compensation to the kin of accident victims or injured through development of a mobile application gained substantial traction as it was able to bring all 26 insurance companies on board. are.
This was one of the key issues before a bench of Justices Sanjay K Kaul and Hrishikesh Roy, which has been engaged in streamlining the process of speedy disbursement of compensation to the victims or injured for the past six months. Motor Accident Claims Tribunal (MACT). The bench has entrusted Additional Solicitor General Jayant Sood with the task of analyzing the difficulties, formulating innovative solutions in coordination/consultation with the states and making the assessment to the court for issuing directions for pan-India implementation.
During the hearing on the issue last week, a bench headed by Justice Kaul said, state transport corporation are not insured because of the exemptions provided and as a result, compensation is not paid for a long time as most of these corporations are running into losses”.
It has been reported by the Union Ministry of Transport and Highways that out of 56 SRTUs, 49 have suffered damages. The top five loss-making SRTUs during 2016-17 were Delhi Transport Corporation (Rs 3,832 crore); Kerala SRTC (Rs 1,771 crore); Best Undertaking (Rs 990 crore); Telangana SRTC (Rs 749 crore) and Haryana ST (Rs 598 crore). These five accounted for about 69% of the total loss by SRTUs. .
“Indeed, there are several instances where vehicles were to be attached for extortion from SRTUs for making payment to the claimants,” the bench said. The SC again fell back on the ASG “to examine the possibility of withdrawing the exemption (from insurance for SRTU buses) or for a mechanism to ensure that these corporations have the funds to meet their liabilities.” Adequate fund pool is available (in motor accidents involving SRTU buses) towards the claimants.
Sood informed the court that efforts to streamline the process of speedy payment of compensation to the kin of accident victims or injured through development of a mobile application gained substantial traction as it was able to bring all 26 insurance companies on board. are.
.