The road has made life much easier and easier for us. It has been making significant contribution to the overall development and promotion of the nation from the general public. However, due to various reasons such as lack of knowledge about the proper use of the road, topography of the road, mechanical defect of the vehicle, carelessness of the drivers, etc., accidents on the road have become like a fate on the road. Such accidents not only cause damage to vehicles but also lead to injuries to innocent people and untimely deaths.
The state used to provide fixed relief to accident victims a long time ago. If some relief amount was set aside for the damage caused by the vehicle, the insurance companies had to prove in writing whether the insurance ÷was or not, and the owner of the said vehicle or the person who was injured by the vehicle would receive a certain amount of relief from the government. I can’t say for sure, but it seems like Rs 50,000 to Rs 60,000.
The state had made third-party liability insurance mandatory since 2066 BS for the best and sustainable risk reduction for the economic and human losses caused by road accidents. The Motor Insurance Directive, 2073 was introduced to further systematize and refine this motor insurance and it is currently in use. It is also being amended from time to time by the regulatory body to make the additional demand for insurance more convenient and systematic.
Since the state has given priority to motor insurance, insurance has been playing an important role in reducing the damage to property and property caused by road accidents.
Conventional Thinking and Reality
There is still a misconception among the public that third-party liability insurance is only a basis for complying with state regulations or renewing the Blue Book. Third-party insurance covers the financial burden of damage caused by your vehicle to another person or property. There is a need to completely change the mindset about insurance. The owner of the motor vehicle is liable if he or she suffers any loss or damage to a third party due to the vehicle. He cannot shirk his responsibility.
In fact, it is not advisable to bear only ‘third party liability’ insurance for your vehicle. Due to the damage to one’s own vehicle, a person can also get into financial problems. Such as fire, natural disaster, theft, etc.
Many vehicles were completely damaged in the recent Zenji agitation. Even if we look at the data published by the Nepal Insurance Authority, the number of motor claims is the highest in comparison to other insurances and it is the highest in Bagmati. Therefore, it is advisable to take comprehensive insurance instead of only third-party insurance by assessing the damage created by the adverse situation, and by doing such comprehensive insurance, the insured will protect himself financially in the long run.
insurance premiums and discounts in case of non-claims{
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In the case of insurance, there is an interdependent relationship between insurance and risk. The higher the risk, the higher the premium. However, there is an exception in the Motor Insurance Rates Directive, 2073 BS. This means that insurance is reassuring in the event of a loss. In addition to this, there is also a provision to get claimless discount for not making any claim during the insurance period.
This means that there is no damage, no claim, which means that you are motivated to drive your vehicle carefully. The regulatory body has made provision to get up to 50 percent of the discount according to the type of vehicle that is driven safely.
Therefore, it is important for the insured themselves to be aware of the risk mitigation. When the insured is responsible, the insurance service will be easier. It should be seen as a common liability and not just a liability of the insurance company. This will create a strong foundation for making insurance more accessible.
Treatment expenses and insurance limits
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In fact, road accidents make people physically disabled and even disabled. As a result, a person is unable to earn a living and has to depend on others throughout his life. In the present time, the cost of treatment is becoming more expensive. It seems that the amount of insurance for the injured is very low.
According to the Motor Insurance Rates Directive, 2073, there is a limit of Rs 300,000 for medical treatment.
In this context, questions are also raised from time to time whether the limit of accidents and liability of motor insurance is low in the current situation. When the insurance is no longer able to hold the risk that the insured needs, the insurance ceases to exist nominally.
Therefore, it would be better to collect accurate and objective information and suggestions on the amendment of the Motor Insurance Directive from the grassroots. The needs of the real customers, the experience of the employees working in different departments of the insurance company, additional arrangements to be made in the claim process and payment, the average of different treatment expenses, people with technical knowledge will help to make it a realistic policy and guideline. If it is practiced to evaluate the needs of the general public and insurance from the point of view of insurance rather than the interest of a limited number of people, it will be established as a reliable service and the individual and society will be completely freed from the financial burden of road accidents.
Classification of risk by risk
Depending on our geographical location, most of the vehicles take a risky journey. Currently, the Motor Insurance Directive categorizes the risk classification and the insurance premium is categorized according to the size, CC and usage of the vehicle. It feels like the system needs to be re-evaluated.
The classification of risk can include geographical location, distance traveled by vehicles, vehicles plying in or out of the city. It is necessary to make these issues the criteria for classification and accordingly re-evaluate the limits of insurance premiums and liabilities.
Unnecessary interference by middlemen for insurance claims{
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Unnecessary interference and bargaining is a major challenge in the insurance claim process. The biggest headache is the direct interference of the middleman. It is very important to discourage unnecessary stress in the name of the insured and bargaining for claim amount.
This will increase unnecessary mental stress on the employees of the insurance company and they will have to take unnecessary stress instead of paying attention to their work processes, which will also affect their mental health.
There is a situation where the victim will not be able to pay the claim on time. As a result, if the common insured is affected, the reputation of the insurance industry will be badly affected.
The insurance agreement should be between the insurer and the insured, but the unauthorized entry of a third party will only cause problems, so the insurance claim process needs to be implemented more clearly and standardized in this regard. A transparent claim process will help make the insurance more dignified and trustworthy.
Ways to institutionalize accident mindset and insurance
Our thinking and behavior is such that we sit on the street and argue unnecessarily after an accident. Don’t go to the solution of the problem. Therefore, even if it is practical, if any person should consider insurance as mandatory as soon as an accident occurs, and if awareness is developed to inform his insurance company about it, then it can be believed that road management will be easier for the traffic police as well as the general public.
There is a provision in the Motor Insurance Directive that the certificate of motor insurance is mandatory in the vehicle, but it has not been implemented in practice. It’s a really useful topic. No one knows when an accident happens on the road. Therefore, if it is kept in the vehicle, the insured can immediately inform the insurer about the accident.
Many problems will be solved if the e-sticker with QR is compulsorily pasted on the windshield of every vehicle by emphasizing the technology. Through this e-sticker, the insured can inform their insurer about the accident in real time. Generally, nowadays everyone has a smartphone in their hands and there is also a good system of the internet, so they can give information about the accident immediately through this digital sticker. Even if you have an ordinary phone, you can send SMS, and the insurer recognizes this information. Since the people involved in the accident do not have stress and the insurance company also gets factual information, the claim process is fast and there is a strong basis to prevent fake documents and false claims.
Since insurance companies are not the only ones to do this, the state’s policy needs to be formulated. It would be effective to have an integrated system in this regard. There is a need to collaborate between the Transport Office, the Nepal Insurance Authority, the insurance company and the traffic police. This will put an end to the long-standing arguments on the streets and the e-sticker as a technology will prove the validity of the insurance claim, which will benefit the state and the general public as the claim process will be quicker.
