In many countries of the world Third Party Compulsory Insurance is mandatory, each vehicle has to be insured and motorists cannot drive a vehicle which is not insured on a public road.
By Neeraj Mahajan
Road traffic
accidents are a leading cause of death and injury worldwide. Nearly 1.2 million
people are killed in road accidents, atleast 50 million are injured, occupying
30-70 percent orthopedic beds in hospitals. And if this trend continues,
road accidents may be the third-leading cause of death and injury by 2020.
The impact of
this accounts for 85 percent annual deaths and a loss of 90 percent of disability-adjusted
life years (DALYs) because of road traffic injury in the developing countries.
The worst affected are the males (73 percent deaths). More than one-half of all road
traffic deaths globally occur in 15-44 age groups or the most productive
earning years. This price is paid by the families
who suffer economic hardship due to the loss of the breadwinner.
As a consequence of this, the standard of living of many poor
families who lose a family member in road accident decreases, a good number of them
have to borrow money to meet routine expenses.
In general, speed, driver impairment, driving under the
influence of alcohol or drugs, Sleep, fatigue, Low visibility are some of the
major causes of crashes, deaths, and serious injuries. Pedestrians, cyclists, moped
and motorcycle riders are the most vulnerable as well as the heaviest road users
in poor countries.
This is notwithstanding the fact that road traffic injuries
are predictable and preventable. In many countries of the world Third Party Compulsory Insurance
is mandatory, each vehicle has to be insured and motorists cannot drive a
vehicle which is not insured on a public road.
The purpose of Comprehensive Insurance is to cover damage to
someone else's property or vehicle as well as own vehicle. In India Auto
Insurance deals with insurance cover for the loss or damage to the automobile
or its parts due to natural and man-made calamities. It provides accident cover
for the owners of the vehicle while driving, passengers and third party legal
liability. In the US drivers opt for insurance as a means of protection against
costly breakdowns – even otherwise.
But this seems to be a problem area as different countries
have different rules. For instance South Africa assigns a percentage of the
money collected from purchase of gasoline into the Road Accident Fund, which
goes towards compensating third parties in accidents whereas in some countries
like Afghanistan, Nepal or North Korea third party insurance is not compulsory.
COMPULSORY INSURANCE
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EUROPEAN
UNION: Austria,
Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, the Netherlands, Poland,
Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom.
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EUROPE
EXTRA EU: Albania,
Andorra, Armenia, Belarus, Bosnia Herzegovina, Croatia, Georgia, Iceland,
Liechtenstein, Macedonia, Moldova, Monaco, Montenegro, Norway, Russia, San
Marino, Serbia, Switzerland, Turkey, Ukraine, Vatican City.
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ASIA: Azerbaijan,
Bahrain, Bangladesh, Bhutan, Brunei, China, Hong Kong, India, Indonesia,
Iran, Iraq, Israel, Japan, Jordan, Kazakhstan, Kyrgyzstan, Kuwait, Lebanon,
Macao, Malaysia, Maldives, Mongolia, Myanmar (Burma), Oman, Pakistan,
Palestine, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Sri
Lanka, Syria, Taiwan, Thailand, Turkmenistan, United Arab Emirates,
Uzbekistan, Vietnam.
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AFRICA: Algeria,
Angola, Benin, Botswana, Burkina-Faso, Burundi, Cameroon, Central African
Republic, Chad, Comoros, Congo (Brazzaville), Democratic Republic of Congo
(Kinshasa), Djibouti, Egypt, Gabon, Gambia, Ghana, Ivory Coast, Kenya,
Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius,
Morocco, Namibia, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone,
South Africa, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda,
Zambia,
Zimbabwe.
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AMERICA:
Antigua
and Barbuda, Argentina, Bahamas, Barbados, Belize, Brazil, Canada, Chile,
Colombia, Costa Rica, Dominican Republic, Ecuador, EI Salvador, Grenada,
Guyana, Haiti, Jamaica, Panama, Peru, Puerto Rico, St. Kitts & Nevis, St.
Lucia, Suriname, Trinidad and Tobago, Uruguay, USA (in 48 federate States out
of 51), Venezuela.
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OCEANIA:
Australia,
Fiji, Kiribati, Nauru, New Zealand, Papua New Guinea, Solomon Island, Vanautu
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COMPULSORY
ONLY FOR SPECIFIC VEHICLES OR IN SPECIFIC AREAS
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ASIA: Cambodia
(commercial motor vehicles), Laos (for foreigners and for commercial
vehicles).
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AFRICA: Mozambique
(for public transport and foreign motorists).
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AMERICA:
Bolivia
(for diplomatic cars), Cuba (diplomats and foreign residents, public
transport, vehicles transporting goods), Guatemala (for public transport and
school-buses), Honduras (for international transport vehicles), Mexico (in
Puebla, Monterrey, Sinaloa and in Distrito Federal for public transport),
Paraguay (for public transport).
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NOT
COMPULSORY
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ASIA: Afghanistan,
Nepal, North Korea, Tajikistan, Yemen
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AFRICA: Cape Verde
Islands, Equatorial Guinea, Eritrea, Ethiopia, Guinea, Guinea Bissau, Somalia
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AMERICA:
Dominica,
Nicaragua, St. Vincent and the Grenadines, U.S.A. (New Hampshire, Tennessee,
Wisconsin).
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OCEANIA:
East
Timor, Tonga, Tuvalu, Western Samoa Islands
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Also Read:
Motor Vehicle Insurance: Taking people for a ride… Part 1
Motor Vehicle Insurance: Taking people for a ride…2
Motor Vehicle Insurance: Taking people for a ride…3
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