Enhance accident cover to Rs 15 lakh: Madras High Court
By Vkeel Team
The amount of personal accident insurance, which is available during road accidents, is going to increase soon. According to the order of Madras High Court given to Insurance Regulatory and Development Authority (Erda), it will now be Rs.15 lakhs. From this, the injured in road accidents or the dependents of the deceased will receive at least this amount.
The bench of Justice R. Subbayya and Eddie Jagdish Chandra said that the amount currently available is very low.
In 2002, one lakh rupees was fixed
In 2002, IRDA had fixed the amount of one lakh rupees in the Personal Accident Insurance cover that was received by the drivers. At that time, such a sum was enough to cure any injured person. Now, after 15 years, the cost of treatment has increased significantly, thereby feeling the need to make changes in this amount.
Vehicles premium will be increased
The High Court has told IRDA that it can also increase the insurance premium for vehicles, if all the stakeholders involved are satisfied. IRDA has been given six months time to implement this.
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