KATHMANDU: Hopefully, highway blockades in the wake of accidents and resulting deaths will be a thing of past.

“On September 1, third party insurance will become mandatory and so will compensation. Major supply routes will be spared of disturbances,” said Finance Minister Surendra Pandey.

Vehicle owners can now get third party insurance for a little more than the usual rate they pay for their vehicle insurance. “Third Party Insurance is a liability cover purchased by an insured — the first party — from an insurer — the second party — for protection against the claims of another — the third party,” said Prof Phatta Bahadur KC, chairman of Beema Samiti.

“Vehicle Insurance Rate Regulation-2009 will also benefit employees in transportation sector, passengers and common people,” KC said, adding that TPI will not be expensive but the deceased’s family or the relatives of the injured can claim a substantial amount.

“The insurance company must pay within 21 days in case of death caused by accident and within two months in case of injury,” said Sharad Chandra Poudel, director general of Department of Transport Management.

“On the demand of

transport entrepreneurs CDOs will ensure settlement of any dispute, as in the

past such incidents had caused law and order problems,” he said, adding

that unlike in the past

police will not impound the vehicle in case of an accident, if the owner shows the vehicle’s TPI papers.