The Odisha Commerce & Transport Department has announced a series of reforms designed to expedite the settlement of vehicle insurance claims. These changes aim to provide quicker and more efficient compensation to beneficiaries under the Motor Vehicles Act of 1988.
The department has been working closely with insurance agencies to streamline the claims process, benefiting both vehicle owners and accident victims throughout the state. Under Section 164 of the Motor Vehicles Act, owners or authorized insurers are required to provide compensation of Rs 5 lakh in the event of death and Rs 2.5 lakh for serious injuries sustained by victims or their legal heirs.
Despite these provisions, a recent assessment revealed that a significant portion of vehicles in Odisha are uninsured. Out of 1.03 crore registered vehicles, over 61.57 lakh lack insurance coverage, representing 59% of the total. This highlights the urgent need for increased awareness and stricter enforcement of insurance regulations.
To address these issues and accelerate insurance reforms, a high-level meeting was held today, chaired by Usha Padhee, Principal Secretary of the Commerce & Transport Department. Representatives from several insurance companies attended this meeting, which took place at the 5th-floor conference hall of Kharvel Bhavan.
The primary focus of the meeting was on reforming existing processes, enhancing regulatory flexibility, and ensuring the smooth disbursement of claims. Padhee emphasized the need for a citizen-friendly approach to insurance settlements, directing insurance companies to create a standardized Standard Operating Procedure (SOP) for consistent implementation.
The finalized SOP will be issued to all stakeholders by the department, aiming to provide greater clarity and improved coordination within the claims process. To further improve insurance accessibility, five leading insurance companies have been empaneled under the Odisha State Road Transport Corporation (OSRTC).
According to the latest data, claims totaling Rs 6.77 crore have been filed, with Rs 1.45 crore already settled. The state government is actively monitoring the resolution of pending claims to ensure a faster settlement process, demonstrating its commitment to efficient insurance disbursement.
In a significant digital initiative, the government is preparing to launch e-DAR (Electronic Detailed Accident Report). This online portal, developed in consultation with insurance companies, will provide instant access to road accident data. The introduction of e-DAR is expected to expedite compensation claims and offer much-needed support to victims’ families.
The meeting was attended by senior officials, including Diptesh Kumar Pattanayak, CMD of OSRTC; Amitabh Thakur, Transport Commissioner of Odisha; and Dr. N Thirumala Naik, MD of CRUT, along with representatives from insurance companies and other senior department officials.
The Commerce & Transport Department urges vehicle owners to renew their insurance policies promptly to avoid potential legal and financial issues. Furthermore, the government is actively exploring policy reforms, organizing awareness campaigns, and developing accessible insurance schemes to expand insurance coverage across the state.
