Page 40 - Insurance Times September 2015 SAMPLE
P. 40

REVIEW OF
THE DRAFT
"ROAD
TRANSPORT
AND SAFETY
BILL, 2015"

on Insurance of Motor vehicle against

third party risk

1. Prelude - This has reference to my earlier article on          3. Road Transport and Safety Bill, 2015- Meanwhile,

Review of the Draft “Road Transport and Safety Bill, 2014”.       the Ministry of Road Transport and Highways, Government
I have tried to project the overall anguish of the general        of India, revisited and revised the said Draft Bill, 2014 as
Insurance Industry on the Draft Bill as under.                    "Road Transport and Safety Bill, 2015" (hereinafter referred
                                                                  to as 'Draft Bill, 2015').
2. Observation relating to Draft Bill, 2014- "Motor
                                                                  4. Importance- It appears that the proverbial slogan
third party is a loss making portfolio already hitting the
bottom line of insurer's in India. Hence it is anticipated that,  'Good days are ahead' going to be true for the general
the Government of India will introduce a capping system           insurance industry in India in case the "Road Transport and
on insurer's overall liability towards third party. The same      Safety Bill, 2015" is passed by the Parliament in its present
is also assured by the former finance minister in UPA             form since, it contains most of the long standing demand
Government, but the draft bill came as a surprise for the         of the industry relating to change in law for 'limited liability',
industry which did not contain any such provision, rather         'limitation for filing application for compensation' and
the same increased insurer's liability to a greater extent.       'inclusion of S. 64 VB Insurance Act, `1938' as a statutory
                                                                  defence.
M. K. DAS     About the author
                                                                  5. Apparent changes in the Draft Bill, 2015- It
           B.A.Hon's & Distinction, B.Ed, M. A.,
           L.L.M., Dip in Cyber Law.                              appears that while redrafting the Bill, by way of insertion
           The author is a former Advocate, presently             and deletion, the makers omitted to synchronize the
           working as Law Officer with the New India              sections noted in the content with the sections noted
           Assurance Company Ltd. at Mumbai.                      against the provisions of the Draft Bill of 2015.

36 The Insurance Times, September 2015

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