Four public sector insurance companies, National Insurance, New India Assurance, Oriental Insurance and United India Insurance have recently come up with a common mechanism for settling third party claims arising with respect to auto insurance. The joint mechanism has already started showing its beneficial flavors with the companies being able to settle claims for as many as 85 cases in Kolkata so far.
The forum's executive committee has so far judged as many as 132 cases in three sessions held between 10th and 24th March 2012.
"In case of a regular court, the settlement of claims takes about 4-5 years, whereas here it can be as quick as a few months," said Mr S. Sen, regional manager, United India Assurance Company.
"A claim which is settled through regular court leads to about 40 per cent rise in final claim payable by the insurer due to addition of interest cost. This is not likely to happen under this mechanism," Mr Sen said.