Government Announcement on Third-Party Insurance Claims

It is reported that insurance companies have agreed with the State Ministry of Transport to provide relevant compensation directly from the insurance company to individuals who suffer loss of life or any other accident due to a collision with a third-party insured vehicle, without the need for court proceedings.

The State Minister of Transport states that arrangements have been made to incorporate these regulations into the Motor Traffic Act, with these amendments scheduled for implementation by the first of March.

The State Minister further mentioned that this decision was made after discussions with nearly forty insurance companies and the Insurance Regulatory Commission in the country, and that insurance companies have agreed to pay compensation up to a maximum of Five Hundred Thousand Rupees (LKR 500,000).

Should the compensation amount be insufficient for the accident victim, they retain the right to pursue further compensation by taking the matter to court.

He also highlighted that in 2018, 562 individuals; in 2019, 653 individuals; in 2020, 449 individuals; in 2021, 3500 individuals; and in 2022, 423 individuals received compensation for road accidents only after their cases had been deliberated in court for several years.