Page 56 - Insurance Times December 2022

High Court awards 1 Crore compensa- It also impacts the marital life of the spouse, who inevita-
bly becomes the main caretaker, deprives children of guid-
tion to accident victim
ance and affection of the parent and puts infirm parents in
The highest monetary compensation will not rebuild his life, a helpless situation.
observed the Bombay high court while enhancing compen-
sation to over Rs 1 crore for a man who was left paraple-
Insurance claim will be rejected if you
gic after sustaining multiple injuries in a November 2004
don't have a valid PUC certificate
road accident.
As per Supreme court rulings: "The Government of India has
"Monetary compensation howsoever high cannot rebuild
made the PUC certificate compulsory for all vehicles under
the life of the victim or reduce his physical or mental
the Central Motor Vehicles Rule of 1989," said Nitin Deo,
trauma. It cannot restore the shattered dreams of the
chief technical officer, Edelweiss General Insurance. There-
spouse, bring back lost childhood of the children or relieve
fore, the IRDAI has asked insurers not to insure a vehicle
the agony of the parents of seeing their child in a vegeta-
without a valid PUC certificate.
tive state," said Justice Anuja Prabhudessai in her Septem-
ber 19 verdict, allowing the 2012 appeal of Yogesh Panchal, "Vehicle owners will be required to present a valid PUC
who was 26 years old at the time of the accident. certificate when renewing their insurance, according to the
IRDAI notification. As per law, no vehicle may operate with-
He suffered 100 per cent permanent disability after a
out third-party insurance, a rule that is frequently broken
dumper dashed the rear side of his motorcycle. In 2009,
due to lax enforcement. The IRDAI decision is based on a
Motor Accidents Claim Tribunal awarded him Rs 48 lakh
Supreme Court judgement which stated that insurers can-
compensation with 7.5 % interest. Justice Prabhudessai
not insure a car unless it has an effective PUC certificate on
enhanced it to Rs 64 lakh. She excluded Rs 23 lakh for fu-
the date of policy renewal," said Sanjiv Bajaj, Jt. chairman
ture expenditure and directed that he is entitled to 7.5%
and MD, Bajaj Capital Ltd. However, this does not mean
interest on over Rs 41 lakh from the date of claim applica-
your insurance claim will be rejected if you don't have a valid
tion (in 2005) till final realisation. She dismissed the appeal
PUC certificate.
of The Oriental Insurance Co Ltd.
New KYC norms: In November, the newly-introduced KYC
Panchal worked as a metal cutter earning Rs 1.70 lakh
norm for easing the insurance claim settlement process has
yearly. After his accident, he underwent several surgeries,
nothing to do with the PUC certificate.
including stem cell therapy and a spine stabilisation proce-
"There is no such update yet. IRDAI released a circular on
dure, and incurred huge medical expenses. He is totally
26 August 2020 after they observed that some media re-
bed-ridden and dependent on others.
ports misrepresented the earlier circular issued by the regu-
The judge noted that paraplegia, which is a form of paraly-
lator. Thus, in August 2020, IRDAI clarified that if you don't
sis of the lower body, impairs physical, mental and psycho-
hold a valid PUC certificate, it doesn't mean that it is a valid
logical health, and has devastating impact on social and
reason for denying claim under a motor insurance policy,"
financial well being of the victim
said Deo.
The Insurance Times December 2022 49