SC challenges state bus insurance exemption | India News

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NEW DELHI: The Supreme Court has asked the Union government to consider removing the insurance exemption from 1.5 lakh buses owned by loss-making state road transport companies (SRTC), because it has caused victims and injuries in accidents involving these buses. to wait years before being compensated by crown corporations.
This was one of the major issues before a bench of Judges Sanjay K Kaul and Judge Hrishikesh Roy, who over the past six months has pledged to streamline the process of promptly paying compensation to victims or injured people. by the Motor Accident Claims Tribunal (MACTs). The judiciary entrusted Additional Solicitor General Jayant South with the task of analyzing the difficulties, developing innovative solutions in coordination / consultation with states and evaluating the tribunal for issuing instructions for implementation in all over India.
At a hearing on the matter last week, Judge Kaul said: “The vehicles of state-owned transport companies are not insured due to the exemption provided and, as a result, compensation is not paid. not paid for a long time, because most of these companies are making losses “.
The Union Ministry of Transport and Highways reports that 49 of the 56 SRTUs suffered losses. The top five loss-making SRTUs in 2016-2017 were – Delhi Transport Corporation (Rs 3,832 crore); Kerala SRTC (Rs 1,771 crore); BEST company (Rs 990 crore); Telangana SRTC (Rs 749 crore) and Haryana ST (Rs 598 crore). These five assemblies accounted for approximately 69% of total SRTU losses. .
The bench said: “In fact, there are many illustrations where vehicles had to be tied up for coercive recovery from SRTUs to make payment to claimants.” The SC once again turned to ASG to “examine the possibility of either removing the exemption (from insurance for SRTU buses) or (designing) a mechanism to ensure that a pool Sufficient funds are available from these companies to meet their liabilities (in automobile accidents involving SRTU buses) to claimants.
Sud informed the court that the efforts to streamline the process of prompt payment of compensation to relatives of accident victims or injured people through the development of a mobile application were successful enough because it was able to involve the 26 companies of ‘assurance.


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