Page 36 - Insurance Times April 2021

7. Hit & Run Motor Accident (Section 161): the rates of death and disabilities but may also reduce
Compensation quantum has been substantially revised the financial burden of the insurers in accident claims.
in the Amendment Act. Amount of compensation has It can also help in reducing the nuisance created by the
been raised to Rs. 2,00,000 in case of death and Rs. ambulance chasers.
50,000 in case of grievous hurt from earlier provision
of Rs. 25,000 & Rs. 12,500 respectively for death & 10. Third Party (Section 145):
The definition of the third party has been widened, and
grievous hurt. The Amendment empowers Central
now in addition to the Government it includes the
Government even to prescribe higher amount of
driver and any other co-worker on a transport vehicle.
compensation for Hit and Run cases.
Drivers and other co-workers of transport vehicles are
now included in the mandated TP insurance.
8. Scheme of Golden Hour for Road Accident
victims (Section 162): The provision with respect to covering liability under
A new section has been added in Chapter XI to provide Workmen Compensation Act for named employees and
scheme for the immediate compensation &cashless provision of non-coverage of contractual liability has
treatment of victims of the accident during the Golden been deleted in the Amendment Act.
Hour. Golden Hour is defined as a time period lasting The new provision will eliminate reference to Employee
one hour following a traumatic injury during which there Compensation Commissioner as the cases now will be
is the highest likelihood of preventing death by providing dealt with only at Tribunals. From insurers perspective
prompt medical care (Section 2 (12A). The insurance however, the claim outgo may be increased.
companies for the time being, shall provide treatment
of road accident victims during the golden hour in 11. Necessity for Insurance against Third Party
accordance with the provisions of the Act and the (Section 146):
schemes made under this Act. The Central Government The provision related to necessity for insurance against
shall make a scheme for the cashless treatment of third party has been kept as it is in the Amendment Act.
victims of the accident during the golden hour and such
scheme may contain provisions for creation of a fund 12. Accident Information Report (AIR- Section
for such treatment.
159):
The concept of Golden Hour is very vital from the This section mandates for information to be given
perspective of insurers too as it could mitigate the losses regarding the accident. The police officer, during the
to a great extent. investigation, shall prepare an Accident Information
Report (AIR), within three months, to facilitate the
9. Protection of Good Samaritans (Section 134 settlement of claim in such form and manner and
A): containing such particulars and submit the same to the
The Amendment Act introduces new section 134-A that MACT and such other agency as may be prescribed.
defines 'Good Samaritan' as a person who, in good faith, From insurers' perspective, this was a wanting provision
voluntarily and without expectation of any reward or with regard to investigation and its report to insurers.
compensation (three ingredients & essentials of It may hopefully curtail the fraudulent practices of
assistance) renders emergency medical or non-medical planting different vehicles in place of uninsured vehicles
care or assistance at the scene of an accident to the and different drivers in place of one who does not
victim or transporting such victim to the hospital. possess valid and effective DL and thus resulting in gain
from insurers' perspective in addition to reliable
Amendment makes provision for protection of good
Samaritans from unnecessary trouble or harassment evidence on accident.
from civil or criminal proceedings and empowers Central
Government to frame Rules for their protections. This 13. Abatement of a Claim for Personal Injury on
is a welcome provision to ensure medical aid to injured Death of the Claimant (Section 166 (5):
accident victims in time. Hopefully, the eyewitnesses to As per present law, a claim for personal injury would
the accident who in fear of legal hassles use to remain abate on the death of the claimant due to operation of
mute spectators may now come forward to help the Section 306 of the Indian Succession Act, and it would
victims in timely medical aid. This may not only reduce not survive to his estate. The claim would survive to the

36 The Insurance Times, April 2021