Question

What is the rationale (policy reasons) for the Statute of Limitations in negligence cases.

Answer 1

The concept of statutes of limitation balances the crucial right to justice with the perception of practical justice. In this perspective the law wants distressed parties to state claims within a realistic period of time. Basically that policy is "use it or lose it" if someone has a right that is protected under the law that has been infringed that is very clear. Nobody can threaten someone with litigation forever that anyone never bring.

Ultimately the person has to file a court case or lose the right to do so otherwise there is no option.
Statutes of limitation are not unfair as it reflect public policies build into the legal system. Although this looks like a imaginary, in practical terms the law is about more than simply proving one party has objective confirmation of bad behavior.

That is why certain claims have much longer statutes of restraint than others, differing from one year to twenty. These conflicting time periods reflect choices made by the governing body.
Furthermore the apparent harshness of statutes of limitations is frequently counterbalanced by existing doctrines. It means a limitations period for bringing a lawsuit does not begin to run until certain conditions are met in the particular way. Some of these apply where the person affected is not aware of the claim, whether because of disguise of the wrong or for other reasons the law deems to be understandable holdup in asserting a claim.

It a major issue in the health care system when we talk about the health insurance policy

Hence this concept should be used for the interest of the health benefits in the insurance.