Every claim against a governmental entity permitted under the provisions of this act or against an employee of a governmental entity shall be forever barred, unless an action is begun within two (2) years after the date the claim arose or reasonably should have been discovered, whichever is later.

[6-911, added 1971, ch. 150, sec. 11, p. 743; am. 1976, ch. 309, sec. 10, p. 1066; am. 1985, ch. 136, sec. 3, p. 373.]