Plugging loopholes in insurance claims

Motor vehicle accident certificates will have to be counter signed by insurance companies 

Accident: The motor vehicle accident certificates will now have to be counter signed by the concerned insurance company to authenticate insurance claims.

This is one of the new components in the tri-party Memorandum of Understanding (MoU) that was signed between the Royal Bhutan Police (RPB), Royal Insurance Corporation of Bhutan Limited (RICBL) and Bhutan Insurance Limited (BIL), yesterday.

“For all insurance claims, the focal person of the insurance company shall be liable for verification and counter signing on the certificate prepared by RBP for authentication,” the MoU states.

Officials said the MoU was signed for a convenient and greater operational efficiency during insurance claims. It was also to address the practical difficulties implementing officials faced for insurance claims based on the certificates issued by the police.

The MoU sets forth written procedures among the three parties involved on the inspection, investigation and issuance of motor vehicle accidents certificate (within and outside the country’s boundaries) and loss of property account for insurance claims pertaining to damage of insured properties due to crime and by fire accidents.

According to the MoU, the insurance companies involved should appoint a focal person in each dzongkhag who would bear the responsibility of visiting the accident scene for investigation and documentation.

In case of motor vehicle accidents occurring beyond the boundaries of the country, any cases reported to the nearest police station, and if the vehicle is insured, the officer in-charge will direct the complainant to the nearest office of the company concerned. The insurance company will then conduct its own investigation on the claims.

In case a certificate is required from the RBP, a request must be made in written by an officer not below the rank of a manager from the company. The RBP will then liaise with the foreign counterpart and issue a motor vehicle accident certificate.

For accidents occurring in the country, a joint visit to the scene will be made by the company focal personal and RBP official for investigation. However, if a joint investigation is not possible, RBP may proceed with the investigation. The focal person of the company before counter signing the certificate will verify the motor vehicle accident certificate.

The motor vehicle accident certificate will mention the probable cause of the accident and other necessary information. The certificate from the RBP will be signed by a minimum rank of lieutenant, states the MoU.

In case of loss to properties insured with the companies, RBP will share the preliminary information related to the case on request from the companies.

For cases related to loss of properties from fire accidents, RPB will provide accident certificate for incidents involving loss for those property that are insured. No counter signature of the insurance companies would be required since the local government officials would jointly conduct the investigation.

Chief of Police Brigadier Kipchu Namgyal said the MoU is signed after consulting all parties involved for a clearer terms of reference and procedures specifying separate responsibilities of the parties. “The MoU will help curb false claims to the companies,” he said.

RICBL’s general manager, Sangay Wangdi, said the procedures were already in practice, however, no written documents were available so far. “To have a uniform regulation throughout the country, the MoU was signed,” he said.

Motor vehicle accident certificates signed by the RBP officials are one of the required documents while claiming insurance of damaged properties.

The MoU comes into effect immediately.

Younten Tshedup 

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