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A friendly business group Diamond jubilee of Egmore Samskrt School Eternal support for capitalisation of PS banks Odisha: spectacular win by Naveen Patnaik Computation of GDP – conundrums continue Fortune for Indian Airlines Increasing non co-operation of state leaders Sweet news for TN sugar mills CRS, a jewel among managers, is no more. TN accounts for the largest recruits by the IT sector Sri Lanka votes for change Tribute – M V Murugappan Marketing expert Balagopal is no more Intellectual of rare qualities Another Indian music maestro at the UN Wise Presidents ONGC at KG Basin Don’t seem to feel the pulse… Towards speedy justice A professional at the helm of IRDA... S V Raju – a ‘good’ true liberal A glass full of corruption Return to king coal for urea... Moily’s bold thrust Lesson from Chandrababu Naidu EVM is tamper-proof How Air-India loses customs... 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West Bengal: mindless malignancy All eyes on Sankara Nethralaya Polls and promises Things happen by accident and not by design... Streamlining mandatory third party cover The balancing act WTO Meet: resolved to meet again Alexa – Talking Wikipedia Silver Years of Madras Musings Inflation: are we emulating Argentina and Brazil? Not just in-laws (and outlaws); they’ve renowned academics at the helm! Lalu’s envy, India’s pride New IT products of Ramco in the pipeline… A more liberated TN… No engine for this car Kinetic Karnataka MHC should not return to its old indisciplined ways Tax agriculture Excel Generators provide the vital back-up More Shakthi to Das’ elbow Tribute The sea- saw battle continues... He continues the focus on social amelioration The nuclear option Dr C Rangarajan returns to Chennai CII projects higher growth… A welcome initiative by the judiciary When Ratan Tata visited SRM Which side are you, Montek? 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No mega rail project for Tamil Nadu The Swadeshi Trump For whom the bell tolls? Shanti and Sadhana through Music Shaming of Tamils by Tamil farmers at Delhi Whistle-Stop Tour of Raghuram Rajan Valli, they are more marginalised Airlines in India: cost and space Pharma – overdose of copying Reliance’s TV – 18 ready to launch Tamil News Channel Modi and the lady Plummeting profits of PSBs Boy, can you beat these? TN-leverage strength of BHEL, NLC... B H Kothari - a tribute A yen for wastage… Where is Rajaji? Five star activism stalls development activity Focus on quality of power - its only around 170-180V Why land prices zoom in TN? Cement prices continue to rise… Tatas moving out of urea production... Multi-faceted Venkat TGS- The king storyteller Limit foreign borrowings to hi-tech, export potential projects... A C Muthiah – his munificent bequeaths to science Rs.1600 crore paper board plant of TNPL Breaththrough in malaria control There was flood of milk. Reason: no milk commissioner! Music happens CSR and CMI: promise of another Srinivasan Ramanujan... GNS - 100: our first subscriber Fuel for thought Make standards certification mandatory... Cleaning Ganga – relocate tanneries and install electric crematoria Making ‘my Amaravati’... Should we change the official year? Godspeed, Chief Minister JJ Infrastructure funding – lessons learnt Editor's Says Welcome thrust on trade in Modi’s foreign visits... Remembering Indira Sivasailam... Bihar – Nitish Kumar adopts the Lalu model An inexplicable neglect
 
Streamlining mandatory third party cover

Even as I commend Nitin Gadkari for his initiative to streamline the issue of driving licences, I suggest his looking into a related area: the gross violation and indifference of owners of motor vehicles to take the mandatory insurance policies for third party cover. The violation extends to over 70 per cent in the case of two-wheelers and 50 per cent for cars and commercial vehicles.

This arises from two factors: one, the task of detecting such violations is with the state government through their RTOs and police departments. These have not been able to cope with the enormous increase in work, attending to the various aspects of administering and regulating road transport. Secondly, they have not had their records automated. Earlier, it was possible to attend to this at the time of payment of annual road taxes. But when the state governments changed this to collect road taxes on life time basis of ten years, enforcing of third party cover could not be made annually.

Insurance companies do have such records at least in regard to new vehicles sold over the last decade or so when the IT sector has evolved. But these have also been disparate companies not working in any coordinated manner. IRDA has been focusing on data collection in recent years.

The problem, however, relates to the coordination between the Centre and the states. Working in unison will help keep track of non-renewal of third party insurance policies.

A recent effort is to increase the duration of third party insurance to three years for two-wheelers. Doing this for cars and commercial vehicles is resisted on grounds of the higher sums involved. But if a substantially large volume of vehicles could be brought under mandatory third party insurance, there is scope for reducing the premium substantially. Such a system will also help insurance companies to reduce the humongous losses they have been suffering on motor vehicle insurance. For years, general insurance companies have been bleeding on account of the losses suffered on motor vehicle portfolio, despite the regular increase in tariff.

A solution can be found in permitting large private companies involved in the automobile sector to join hands with the government. In this, insurance companies and IT companies could be involved. The PPP mode can help attend to this issue of considerable importance in quick time. Nitin Gadkari, who has breathed fresh air in regard to the issue of driving licences and who has suggested the closing down of the inefficient RTOs, should focus on this area as well.

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