SECP wants increase in insurance benefits for car owners

SECP wants increase in insurance benefits for car owners:

ISLAMABAD: The proposed change to the Motor Vehicles Act 1939 (MVA) has improved the damages amount in the event of deaths due to road injury to Rs500,000 from Rs20,000. The Securities and Exchange Commission of Pakistan (SECP) is updating it to be executed within third party liability insurance strategies.

"The challenge is that existing laws aren't being executed by the provincial transportation authorities. Furthermore, the present amount of compensation given in case of road accidents isn't appealing for ordinary drivers -- that is the reason why they've ceased buying the compulsory third party insurance," said an official of the SECP.

Even though it's compulsory under the present MVA for all motor vehicle owners to have third party liability insurance cover, which can be intended for compensating road crash victims or their lawful heirs, the clinic has ceased.

"To tackle the numerous problems with the previous legislation, the proposed amendment intends to present a no-fault alternative, in which a claim for death or physical harm will be payable to the victims of road accidents or their lawful heirs without getting a court order and no matter whether the injury is determined to be the fault of the insured person," the official added.At exactly the exact same period the damages quantity of Rs20,000 for lawful heirs in the event of injury leading to death continues to be improved to Rs500,000. The law also includes a list of obligations in the event of accidents that cause permanent disabilities.


The draft of this proposed amendment was posted on the SECP's site and remarks can be produced until Sept 29, and it'll be shared with the Insurance Association of Pakistan, non-life insurance providers and insurance agents prior to finalising the amendment.