The odd-even formula implemented in Delhi by the AAP government may spell bad news for car owners not following the rule but seeking insurance claims. Several insurance companies are internally deliberating on whether or not to honour claims during this period in cases where drivers have violated the rule. However, they are yet to get clarity on the legal status of the same.
So, if you have driven a car with odd number on the day when even-numbered cars were allowed, you may have some problems in getting your claims, since you have violated the law. The odd-even law was notified under Section 115 of the Motor Vehicles Act, 1988 and has full effect as a law.
Insurance companies have not taken any final decision on this and the policy could differ from company to company, sources said.
“Internally the issue is being debated and there is no clarity yet, but technically one has to find out whether claims would be given to people who have not been following the law,” said a senior executive at a private general insurance company who did not wish to be identified.
Tapan Singhel, MD and CEO, Bajaj Allianz, however, said that there is no clarity on the issue and “it also depends on the contract signed between the insurer and the customers.”
“Even the verdict of the Delhi High Court has confirmed the same (the odd even formula). Therefore, technically and legally speaking, the insurance companies would be entitled to reject claims arising in relation to vehicles driven in violation of the odd even notification,” Manoj Kumar, managing partner at corporate law firm Hammurabi and Solomon and member, Governing Council, Bar Association of India told Hindustan Times.
The formula is in place in the capital from January 1 till January 15 with an aim to curb pollution. The odd even project, which has received support from several corners, may even be re-introduced.