The Insurance Regulatory & Development Authority of India (IRDAI) has sent out a circular to all insurers for them to carry out “suo motu” settlement of claims for the victims and families of the Odisha train collision. On Friday, two passenger trains and one freight train collided in Odisha’s Balasore district, resulting in the death of at least 288, with over 1100 others injured.
| Suo moto is a Latin phrase meaning “of one’s own motion.” It is used in South Asian law to typically describe an action taken without the need to wait or hear from another party. |
The IRDAI has requested insurers contact district administration and railway authorities to obtain lists of those who have perished or been injured in the incident. It is anticipated that insurance companies will verify the passenger lists, collect feedback from the railways, and expedite the settlement of claims without the demand of the usual paperwork associated with the process.
In certain catastrophic accidents, quick settlements can be pursued by both the regulator and the industry. This has previously happened in India in the wake of natural disasters such as the flash floods in Himachal Pradesh and the Mumbai blasts.
By acting swiftly and settling claims for victims and their families, insurers and the IRDAI are hoping to provide relief and related financial assistance n order to help victims and their families move forward in the grieving process.
