The Insurance Regulatory Commission of Sri Lanka (IRCSL) has implemented a new system aimed at providing compensation to third-party victims of motor vehicle accidents or their legal heirs, without the need for court proceedings. Effective from March 1, this alternative method offers compensation up to a maximum of Rs. 500,000.
In collaboration with the Transport and Highways Ministry and other stakeholders in the transport sector, the Commission introduced this system to streamline compensation processes. Importantly, the existing legal avenues for compensation remain unaffected by this initiative.
Under this scheme, pedestrians and cyclists who are killed or permanently disabled in motor vehicle accidents are eligible for compensation. The insurance company covering the motor vehicle involved in the accident will provide the relevant compensation.
To claim compensation, applicants must complete the application provided in Circular No. 03 of 2024 issued by the Insurance Regulatory Commission and submit the required documents to the insurer within six months of the incident. Compensation amounts to Rs. 500,000 for death and up to Rs. 500,000 for permanent disability, subject to specified limits.
It’s crucial to note that death or disability must result from the motor vehicle accident and occur within 12 months of the incident. Additionally, if the compensation provided under this system is deemed insufficient, victims or their legal representatives retain the option to pursue legal recourse through court proceedings.
This alternative compensation system aims to expedite the process of providing relief to motor vehicle accident victims and their families, ensuring timely support during challenging circumstances.
