Hopefully, highway blockades in the wake of accidents and resultant deaths will be a thing of the past.
"From September 1, third party insurance has become mandatory and thus, compensation. Now, major supply routes will be spared of disturbances," said Finance Minister Surendra Pandey. Highway and road blockades at various places have become a frequent occurrence due to accidents and ensuing protests.
Vehicle owners can now get third party insurance at a little over the usual rate they are paying for their vehicle insurance and ensure peace of mind. "Third Party Insurance is a liability cover purchased by an insured -- the first party -- from an insurer -- the second party -- for protection against the claims of another -- the third party," said Prof Dr Phatta Bahadur KC, chairman of Beema Samiti.
"Vehicle Insurance Rate Regulation-2009 will also benefit employees in transportation sector, passengers and common people," KC said adding that TPI willnot be expensive but the deceased's family members or injured's relatives can claim a substantial amount, though it differs to vehicle to vehicle. The vehicle insurance comes under the non-life insurance.
In his budget speech for the fiscal year 2009-10 on July 13, Pandey had announced that the third party insurance would be implemented from August 17. Now, it will be implemented from September 1 as the Department of Transport Management took some time to finalise the process of payment. "The insurance company must pay within 21 days in case of death caused by accident and within two months in case of injury," said Sharad Chandra Poudel, director general of Department of Transport Management. "CDOs -- as urged by transport entrepreneurs -- will see to the settlement, as in the past such incidents have caused law and order problems," he said adding that unlike earlier police will not hold the vehicle back in case of accident, if the owner shows the vehicle's TPI papers.
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