Govt preparing to increase compensation to road accident victims
Sunday, 16 August 2009 10:26

The government is preparing to increase the compensation provided to the victims of road accidents by increasing the insurance amount on all vehicles, Nagarik daily reported.

A report prepared by the ministry of labour and transport management in coordination with the transport entrepreneurs and the insurance committee, the regulatory body of the insurers in Nepal, has proposed to increase the insurance amount to a minimum of Rs 1 million from the existing Rs 300,000.

According to the report, a compensation of Rs 500,000 will be paid to the family of a third party victim in case of death and a treatment cost of up to Rs 200,000 will be provided in case of injury. In addition, an attendant to the injured will be provided with Rs 500 per day for a period of one month.

If a victim is disabled due to an accident, a compensation of Rs 500,000 will be provided.

The proposed regulation is expected end the trend of blocking roads and staging demonstrations demanding compensation after almost every accident.

There is widespread belief among the general public that some drivers reverse their vehicles to kill the victim after an accident to get away by a smaller compensation. According to the existing laws, the compensation in case of death due to accident is much lower than the average treatment cost of the victim.

Insurers have said, with the new provisions, the premiums of vehicle insurance will increase at least twice.

The proposed regulation will apply for all 850,000 vehicles registered in the country.

As per the regulation, the family of the driver or helper will get Rs 500,000 through the insurance in case of death on duty. Earlier this amount was Rs 150,000.

Likewise, victims traveling in the same vehicle will get Rs 100,000 in case of death and a treatment cost of up to 50,000 in case of injury.

The ministry of labour and transport management has forwarded the report to the law ministry to prepare a by-lawor regulation to incorporate the proposals. nepalnews.com