Kathmandu, August 8
In a bid to raise the compensation amount paid to road accident victims, the government has sought expression of interest (EoI) from insurance companies.
“We are going to revise the existing provisions of third party insurance for road accidents,” said Tulsiram Aryal, spokesperson for Department of Transportation Management (DoTM).
At present, road accident victims get up to Rs 300,000 for medical treatment in case of injury and the victim’s family get up to Rs 500,000 in case of death as third party insurance coverage.
Earlier, family members of the victims used to be able to get more than the set threshold by negotiating with the transportation committees. “However, as the committees have now been scrapped, we felt the need to increase the insurance amount because the current compensation is very low,” Aryal added.
The DoTM has published a 15-day notice asking life and non-life insurance companies to submit their proposals regarding the amount that can be hiked in terms of third party insurance.
Along with the compensation amount, owners of two- and four-wheelers will also have to pay more as third party insurance. According to Aryal, the department is holding consultations with the Insurance Board to raise the third party insurance amount.
Written by Sandeep
This news first appeared on https://thehimalayantimes.com/business/dotm-seeks-eoi-to-raise-third-party-insurance/ under the title “DoTM seeks EoI to raise third party insurance”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
