Insurance companies have agreed to go for out-of- court settlements in cases of vehicle accidents involving third party insurance, said state minister Lasantha Alagiyawanne.
Regulations to enable that will be incorporated into the motor traffic act by 01 March, he said.
That comes after discussions by the insurance regulatory commission with nearly 40 insurance companies, he said.
They agreed to pay a maximum of Rs. 500,000 compensation, but any aggrieved party could go to court to seek a higher amount, he added.