Motor vehicles Bill changes to please insurance firms, says Opposition

A. M. Jigeesh Updated - November 15, 2017 at 01:49 PM.

NDA, Left to oppose Bill in LS

Opposition parties are gearing up for a confrontation with the Government in the Lok Sabha over the Motor Vehicles Amendment Bill, 2007, which was passed by the Rajya Sabha on Tuesday. It is likely to come up next week.

The key issue is the alleged attempt to “fix a cap” on compensation for accident victims.

Citing some sections of the Bill, Opposition parties are alleging that the Bill is being brought to “please insurance companies”.

The Bill was passed in the Rajya Sabha amidst din after an hour-long discussion on Tuesday. Clauses 64 and 65 of the Bill, which mainly deal with compensation, have irked some Parliamentarians. Even during the discussion, members belonging to BJP, CPI(M), BSP and Shiv Sena had aired their reservations against these clauses.

In Clause 64, the Bill suggests adding a Section 217 B that says that in cases where the cause of death is not relatable with the injury, the compensation shall be restricted to the period between the date of injury and the date of death.

“A good advocate can plead and say that the death was not relatable or has no nexus with the injury. This is a very serious issue,” the CPI(M) MP, Mr K.N. Balagopal, said, adding that the amendment is in the interest of the insurance companies. “How can one prove the nexus of injury with death?” he added.

Some members also pointed out the “contradiction” between some Sections in Clause 65. They said that the minimum amount payable to a victim is Rs 1 lakh, but Section 3(c) says that “the maximum annual income for calculation of compensation will be deemed to be Rs 1,00,000 even if the income exceeds Rs 1,00,000.”

Shiv Sena MP, Mr Anil Desai, said the amount was fixed without considering the age or income of the victim. “Whatever be the case or whatever be the cause, a very paltry sum is being paid. This is the ploy of private insurance companies which have their limitations,” Mr Desai said in the Rajya Sabha.

Sources indicated that the National Democratic Alliance and the Left parties have decided to oppose the Bill in the Lok Sabha. “Not much time was given to discuss such an important Bill in Rajya Sabha. We will take up the Bill more seriously in the Lok Sabha,” an Opposition member said.

> jigeesh.am@thehindu.co.in

Published on May 9, 2012 17:21