Insurance Foundation of India welcome decision of IGL to give Accident Insurance to Public Transport

GREATER KAILASH, India - Aug. 13, 2013 - PRLog -- Insurance Foundation of India (http://ifingo.org/home.php) welcomes decision of IGL to give Accident Insurance to Public Transport Vehicles Drivers. 

Insurance Foundation of India is pleased to know that Ministry of Petroleum & Natural Gas in association with Indraprastha Gas Ltd.  has come out with a plan to give attractive insurance benefits (http://www.healthinsuranceindia.org/abt_author.asp) to Public Transport Vehicles Drivers in Delhi: 

Rs. 1.5 Lakh (one lakh fifty thousand) in case of Death of a Driver while driving the Public Transport Vehicle to the nominees
An additional amount of Rs.25,000/- towards Children’s Education Allowance per child subject to a maximum of Rs.50,000/- (two children)
In case of an accident requiring treatment for fracture a maximum sum of Rs.10,000/-
In case of permanent disability that leads to loss of employment, then a lump sum equal to 100% is payable to such insured person
Rs.1,500/- to Rs.75,000/- graded compensation for partial disability

“We as NGO welcome this step – however Accidental Death benefit should have been extended to insured on 24 hours basis and on 365 days basis” according to S. K. Sethi Vice President, Insurance Foundation of India.

A driver may be driving the vehicle for 300 days and 8 hours / day which means 2400 hours in a year VS 365 X 24 = 8760 hours i.e. 27% of the time during the year he in covered.

We feel that (Government / IGL) should take liberal stand and cover these drivers on 100% basis i.e. 24 hours on all 365 days.

IFI is a not for profit organization working towards spreading the message of insurance among masses. This NGO was responsible for organizing Conference on “Role of NGO’s in Distribution of Micro Insurance & Social Insurance with CSR linkage” which was held in PHD House, New Delhi on June 20, 2013. Large number of Insurance Companies, NGO’s and Social Workers & CSR Groups of Corporates attended the conference.

In the light of amendments to Indian Companies Act – the question arises whether this expense of IGL will be counted towards CSR project.

According to S. K. Sethi Vice President, Insurance Foundation of India “It will not be counted as Drivers are the customers of IGL and CSR activity should not be oriented towards employees or customers. There has to be an arms length transaction. We suggest to IGL to take suitable tax opinion in this regard”.

IFI is a not for profit organization (www.ifingo.org) working towards spreading the message of insurance among masses. This NGO was responsible for organizing Conference on “Role of NGO’s in Distribution of Micro Insurance & Social Insurance with CSR linkage” which was held in PHD House, New Delhi on June 20, 2013. Large number of Insurance Companies, NGO’s and Social Workers & CSR Groups of Corporates attended the conference.