In what could be described as a landmark event, the APSRTC has taken the initiative to create a ‘safety fund’ meant to extend financial help to the relatives of passengers killed in accidents. The fund will be created by way of levying a safety cess of Re 1 on each passenger travelling in deluxe and super deluxe services.

According to Jaya Rao, executive director, APSRTC, the decision to levy of safety cess has come into force from Tuesday. The RTC with a fleet of 12,000 buses has entered into a tie-up with the insurance companies to insure passengers by utilising the fund for payment of premiums on behalf of the latter. In the event of death, family members of a passenger will get Rs 10 lakh in 10 days as per the understanding between the RTC and the insurance companies.


Jaya Rao told that the cess would be collected only from the passengers commuting in deluxe and super deluxe buses with an assurance to ensure coverage of all the passengers regardless of the services in which they travelled. Rough estimates said over 60 lakh passengers are travelling in deluxe and super deluxe buses indicating collection of cess to a tune of Rs 60 lakh a day. Official sources said not less than 80 passengers are losing their lives in accidents every year and it has become impossible for the RTC to extend compensation in full through a scientific mechanism till now.

 A committee will be constituted with RTC officials to decide the ex gratia amount depending on the age of the victims and their income levels besides the families’ economic conditions. If the amount is not agreeable to the victims’ families, the latter can approach courts for higher amounts. This is a tedious process through which the bereaved family members find it difficult to be compensated in a fair manner.
“Now every victim’s family will get justice with the safety fund,” commented RTC employees union deputy general secretary Y V Rao. A delegation of the union met RTC executive director (administration and personnel) and welcomed the initiative.

But for the safety cess, it is impossible for the RTC to insure its passengers in large numbers by paying to the insurance companies on its own. The amounts will run into crores of rupees as insurance has to be made seat-wise for all the 80,000 buses. A senior official said modalities are being worked out to let the scheme become fully operational.

News : Times of India

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