INDIAN INSURERS OUTSOURCE SETTLEMENT OF ACCIDENT CLAIMS

The settlement of accident compensation claims are to be outsourced by India’s non-life insurers as a way of avoiding the growing costs that have arisen from large claims. The central agency responsible for servicing all claims caused by accidents involving commercial vehicles will be a department of the state-run General Insurance Corporation. Prior to the agencies establishment, a series of formalities will be explored by a committee featuring senior executives from Tata AIG, Bajaj Allianz and the General Insurance council. Speaking to the Economic Times, Tata AIG managing director Dalip Verma said: “Without the success of this motor pool, the insurance industry does not have a fighting chance of breaking even in motor third party insurance business.” “Centralising claims settlement will enable the industry identify areas where accidents are high and help them work towards reducing accidents,” added Kaemsh Goyal, chief executive of Bajaj Allianz. The move adds to the recent establishment of a pool to collect all losses or profits that emerge from third-party motor liability insurance that went live as of April this year.