Bhubaneswar: A recent assessment has revealed that 59% of vehicles in Odisha remain uninsured. Out of 1.03 crore registered vehicles, over 61.57 lakh vehicles lack insurance coverage.
Under Section 164 of the Motor Vehicles Act, 1988, vehicle owners or authorized insurers are mandated to provide compensation of ₹5 lakh in case of death and ₹2.5 lakh for grievous injuries to victims or their legal heirs.
Worried over the fact that large number of vehicles in the State not covered under insurance thus leaving many vehicle owners exposed to financial risks and legal consequences, the State transport department has underscored the urgent need for improved awareness and enforcement.
The department has urged the vehicle owners to renew their insurance policies promptly to avoid legal and financial complications. Additionally, the government is actively exploring policy reforms, awareness campaigns, and accessible insurance schemes to expand insurance coverage across the state.
To accelerate insurance reforms, a high-level meeting was convened today under the chairmanship of Ms. Usha Padhee, Principal Secretary, Commerce & Transport Department, with representatives from various insurance companies.
The meeting focused on reforming existing processes, enhancing regulatory flexibility, and ensuring seamless claims disbursement.
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 empanneled insurance agencies, benefiting vehicle owners and accident victims across the state.
Ms. Padhee emphasized the need for an efficient, citizen-friendly approach to insurance settlements and directed insurance companies to develop a customized 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 empaneled under the Odisha State Road Transport Corporation (OSRTC). As per the latest data, claims worth ₹6.77 crore have been filed, with ₹1.45 crore already 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.
The meeting was attended by senior officials including Diptesh Kumar Pattanayak, CMD, OSRTC; Amitabh Thakur, Transport Commissioner, Odisha; Dr. N Thirumala Naik, MD, CRUT; along with representatives from insurance companies.
