Optional Compensation Scheme for third party victims of motor vehicle accidents

Friday, 28 June 2024 00:24 - - {{hitsCtrl.values.hits}}

The insurance industry has begun implementing an Optional Compensation Scheme (OCS) to compensate the third-party victims of motor vehicle accidents or their legal heirs without any legal proceedings.

This is following an initiative by the Insurance Regulatory Commission of Sri Lanka (IRCSL) in consultation with the Transport and Highways Ministry, stakeholder organisations related to the transport sector and the licenced insurance companies.

IRCSL said third party victims, such as pedestrians and cyclists who are deceased or permanently disabled due to motor vehicle accidents are eligible.

Compensation is paid to the victim or his/her legal heirs by the respective licensed insurance company which has insured the motor vehicle involved in the accident.

For death - Five Hundred Thousand Rupees (Rs. 500,000); and for permanent disability - up to a maximum of Five Hundred Thousand Rupees (Rs. 500,000), subject to the limits mentioned in the circular mentioned below. The insurance company will pay the compensation on humanitarian grounds without assuming legal liability under the motor insurance policy issued.

The victim or his/her legal heirs can institute legal action to seek appropriate compensation if they believe compensation under this scheme is not sufficient.

Full details of the OCS, including the method of applying for compensation, conditions etc. are provided in the Circular No: 3 of 2024 issued by IRCSL, which can be accessed from the IRCSL web page www.ircsl.gov.lk. Hotline on OCS 011-2396188.

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