V S Chaughule, an advocate practicing in the motor vehicle tribunal said that reduction in liability of insurance companies will make it difficult for victims to get compensation, as it is very difficult to recover the money from the owner of vehicles.
“It is for this reason that the liability of insurance companies was made unlimited in 1994. Insurance companies have been paying the entire amount of compensation ever since,” Chaughule added.
NC Seth, vice president, bar association, MACT, pointed out that that there have been cases where the compensation awarded to the victim’s family has reached Rs. 1 crore, which was paid by the insurance company. “Recovering such a large amount from the owner may result in a long legal battle,” said Seth.