The Commerce & Transport Department of the Odisha government has unveiled significant reforms aimed at accelerating the settlement of vehicle insurance claims, providing quicker and more straightforward compensation for beneficiaries under the Motor Vehicles Act of 1988.
The department is actively collaborating with insurance agencies to streamline the claims procedure, benefiting both vehicle owners and accident victims across the state. As per Section 164 of the Motor Vehicles Act, vehicle owners or authorized insurers are obligated to provide ₹5 lakh in compensation in the event of death and ₹2.5 lakh for serious injuries to victims or their legal heirs.
However, a recent assessment reveals that a significant portion of vehicles in Odisha remain uninsured. Shockingly, 59% of the state’s vehicles lack insurance coverage, leaving many owners vulnerable to financial liabilities and legal repercussions. Of the 1.03 crore registered vehicles, over 61.57 lakh are uninsured, highlighting the urgent need for increased awareness and stronger enforcement.
To this end, a high-level meeting was convened today, chaired by Smt. Usha Padhee, Principal Secretary of the Commerce & Transport Department. The meeting, held at the 5th-floor conference hall of Kharvel Bhavan, brought together representatives from numerous insurance companies to discuss improvements to existing processes, enhance regulatory flexibility, and guarantee seamless claims disbursement.
Smt. Padhee stressed the need for an efficient and citizen-friendly approach to insurance settlements. She directed insurance companies to devise a customized Standard Operating Procedure (SOP) aimed at uniform execution across the board. The department will issue the final SOP to all stakeholders to increase transparency and coordination in the claims process.
Further enhancing accessibility, five leading insurance companies have been empaneled under the Odisha State Road Transport Corporation (OSRTC). As per the latest data, claims worth ₹6.77 crore have been filed, with ₹1.45 crore already settled. The state government is actively monitoring the resolution of pending claims to expedite the settlement process, reinforcing its commitment to efficient insurance disbursement.
In a major digital initiative, the government is preparing to launch e-DAR (Electronic Detailed Accident Report), an online portal developed in collaboration with insurance companies. e-DAR will provide immediate access to road accident data, expediting compensation claims and offering much-needed relief to victims’ families.
The meeting was also attended by senior officials, including Diptesh Kumar Pattanayak, CMD of OSRTC; Amitabh Thakur, Transport Commissioner of Odisha; Dr. N Thirumala Naik, MD of CRUT; alongside representatives from insurance companies and other senior department officials.
The Commerce & Transport Department is urging vehicle owners to renew their insurance policies promptly to circumvent potential legal and financial issues. In addition, the government is actively exploring policy reforms, awareness campaigns, and accessible insurance schemes to expand insurance coverage across the state.
