Speed Post News Network
New Delhi : Union Road Transport & Highways and MSMEs Minister Nitin Gadkari on January 28, 2020, called for including the road projects in the country into the ambit of insurance. He said that several countries in the world are following the practice of insuring infrastructure projects. They include Canada, Australia, USA, South Africa, and UK, he said.
Addressing a Workshop on Motor Vehicle Insurance and Road Safety in New Delhi on January 28, the Minister informed that the Supreme Court has made it mandatory for all new two-wheelers to have a five-year third party insurance. Similarly, for cars and commercial vehicles, it is mandatory to have a three-year third party insurance. In case of default, there is a provision of fine up to Rs 2,000. Under the third party insurance, the responsibility of compensating an accident victim shifts from the vehicle owner to insurance company.
Underlining the importance of insurance, Gadkari said that with a little procedural change in insurance practices, the death rate due to road accidents can be brought down significantly. He said his Ministry is considering forming a Motor Vehicle Accident Fund, which will fund the amount for compensation in hit and run cases, according to a PIB release. The fund will also be used for medical treatment of accident victims. He said the compensation amount in hit and run cases has been increased to Rs 2 lakh while for the injured people in such cases, it is now Rs 50,000.
The Minister said that provision has been made in the Motor Vehicles Act to protect those helping the accident victims. The government is also contemplating making provision for protection of doctors, nurses and other medical staff from hassles in such cases, he said. Two special booklets titled ‘Road Safety Guide for Children’ and ‘Road Safety and Safe Driving’ were released on the occasion.