Commerce & Transport Department Government of Odisha has introduced key reforms to expedite vehicle insurance claim settlements

Bhubaneswar:1/3/25: The Commerce & Transport Department, Government of Odisha, has introduced key reforms to expedite vehicle insurance claim settlements, ensuring swift and hassle-free compensation for beneficiaries under the Motor Vehicles Act, 1988. In its ongoing efforts to streamline the claims process, the department has been actively coordinating with empanneled insurance agencies, benefiting vehicle owners and accident victims across the state.

Under Section 164 of the Motor Vehicles Act, 1988, vehicle owners or authorized insurers are mandated to provide compensation of ₹5 lakh in case of death and ₹2.5 lakh for grievous injuries to victims or their legal heirs.

However, a recent assessment has revealed that 59% of vehicles in Odisha remain uninsured, leaving many vehicle owners exposed to financial risks and legal consequences. Out of 1.03 crore registered vehicles, over 61.57 lakh vehicles lack insurance coverage, underscoring the urgent need for improved awareness and enforcement.

To accelerate insurance reforms, a high-level meeting was convened today under the chairmanship of Usha Padhee, Principal Secretary, Commerce & Transport Department with representatives from various insurance companies.

Held at the 5th-floor conference hall of Kharvel Bhavan, the meeting focused on reforming existing processes, enhancing regulatory flexibility, and ensuring seamless claims disbursement.

Smt. Padhee emphasized the need for an efficient, citizen-friendly approach to insurance settlements and directed insurance companies to develop a customized Standard Operating Procedure (SOP) for uniform execution. The department will issue the final SOP to all stakeholders, ensuring greater clarity and coordination in the claims process.

To strengthen insurance accessibility, five leading insurance companies have been empaneled under the Odisha State Road Transport Corporation (OSRTC). As per the latest data, claims worth ₹6.77 crore have been filed, with ₹1.45 crore already settled.

The state government is actively monitoring the resolution of pending claims to ensure a faster settlement process, reinforcing its commitment to efficient insurance disbursement.

In a significant digital initiative, the government is set to launch e-DAR (Electronic Detailed Accident Report), an online portal developed in consultation with insurance companies. e-DAR will provide instant access to road accident data, accelerating compensation claims and offering much-needed relief to victims’ families.

The meeting was attended by senior officials including Diptesh Kumar Pattanayak, CMD, OSRTC; Amitabh Thakur, Transport Commissioner, Odisha; Dr. N Thirumala Naik, MD, CRUT; along with representatives from insurance companies and other senior department officials.

The Commerce & Transport Department urges vehicle owners to renew their insurance policies promptly to avoid legal and financial complications. Additionally, the government is actively exploring policy reforms, awareness campaigns, and accessible insurance schemes to expand insurance coverage across the state.