Cuttack, March 27: In a bid to provide speedy and just compensation to the families of the victims of road accidents, a common mechanism for compromise settlement of third party claims has been launched today.

For the first time in India, four companies — National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United Insurance Company Limited — have evolved a common mechanism for compromise settlement.

At present, more than 10 lakh compensation cases arising out of road traffic accidents are pending before tribunals in India against these four public sector general insurance companies.

The figure is increasing because of increasing number of road accidents, The average time taken in the adjudication of such cases is between three to five years, pendency of the cases keeps on increasing.

“The need of such mechanism was to tide over the problem in delay in processing and settlement of such claims. The objective of the scheme is to provide a mechanism for expeditious disposal of cases pending before various motor vehicle claims tribunals where any of the public sector general insurance companies is a party,” said National Insurance Company’s manager Jatindranath Das.

Das said the project had been launched for the first time as a pilot project in Cuttack. The scheme would be made operational in Kochi, Mehsana in Gujarat and Jaipur. There were plans to introduce the new mechanism at 100 other centres across.

The four public sector general insurance companies have made consistent efforts under the guidance of the judiciary for compromise settlement of the cases, where insurance companies are absolutely liable, through lok adalats so that claimants get speedy compensation.

From now on, motor accident cases involving death and injury pending before the Cuttack Tribunal will be placed before the common mechanism. The mechanism’s executive committee comprises a retired district judge, an orthopaedic surgeon and a retired insurance official.

“The project is a proactive measure as claim cases can be decided other than the court of law which will be an alternative dispute redressal system,” said Justice B.P. Das of Orissa High Court and executive chairman, Orissa State Legal Services Authority.

Those present at the launch included Justice L. Mohapatra of high court and chairman, Orissa High Court Legal Services Committee, N.S.R. Chandraprasad, CMD, National Insurance Company, C.P.R. Varma, general manager, National Insurance Company and M.A. Kharat, general manager, United India Insurance Company.