Bhubaneswar: Around 59 per cent of vehicles plying in the state are uninsured, leaving many vehicle owners exposed to financial risks and legal consequences, according to a survey by the Commerce and Transport department.
This was revealed during a high-level meeting at Kharavel Bhavan here under the chairmanship of the department’s Principal Secretary Usha Padhee Friday. The report said that out of 1.03 crore registered vehicles, more than 61.57 lakh lack insurance coverage, underscoring the urgent need for improved awareness and enforcement.
The meeting, which was also attended by representatives from various insurance firms, focused on reforming existing processes, enhancing regulatory flexibility, and ensuring seamless disbursement of claims.
The department 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 empanelled insurance agencies, the meeting revealed. Under Section 164 of the Motor Vehicles Act, 1988, vehicle owners or authorised insurers are mandated to provide compensation of Rs 5 lakh in case of death and Rs 2.5 lakh in case of grievous injuries to victims or their legal heirs.
Padhee emphasised the need for an efficient, citizen-friendly approach to insurance settlements and directed insurance companies to develop a 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 empanelled under the Odisha State Road Transport Corporation (OSRTC).
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As per the latest data, claims worth Rs 6.77 crore have been filed, while Rs 1.45 crore have already been 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.
Padhee urged vehicle owners to renew their insurance policies promptly to avoid legal and financial complications.
PNN
