Motor Accident Claims - Blogs

Supreme Court Judgment - Bajaj Allianz General Insurance Company Private Limited -Vs- Union of India & others - Issues directions on Motor Accident Claims


1. The Remittance of Compensation have to follow the judgment of the Madras High Court in Divisional Manager -vs- Rajesh (2016, SCC online), (Mad. 1913) dated 11.03.2021.


2. The amount deposited in the Tribunals are being credited in savings account with the result that there is accrued interest which keeps lying unattended. Further, whenever orders are passed for disbursement of compensation to the beneficiaries, any such interest would enure to the benefit of the beneficiaries and would follow the principal amount.


3. The Insurance Companies liability comes to end on deposit of the compensation amount ordered by the Motor Accident Tribunal. They have to communicate the factum of the deposite forthwith/expeditiously to the concerned Motor Vehicle Accident Claims Tribunal with a copy to the Beneficiary.


4. For the issuance of Certificate on disability of victims, the Supreme Court has laid down guides lines in Raj Kumar -vs- Ajay Kumar & another (2011, 1 SCC 343) - Mandatorily must be followed by the Motor Accidents Claims Tribunals. The Certificate of Disability can be marked as evidence without the necessity of summoning the concerned witness to give formal proof of the documents.


5. The Claimants need to have PAN Card and they have to mention the PAN Card No. in the claim petition for Tax deduction at Source.


6. The direction passed on 16.03.2021 circulated to the Police Stations, Motor Accident Claims Tribunal Courts to improve the efficiency for the speedy disposal of the Motor Accident Claims Petitions.


7. All 26 Insurance Company has given assurance to develop a Common Mobile Application.


8. Directed Alternatively to create a mechanism to ensure that a sufficient fund pool was available with the vehicles of the State Corporations.


9. For Settlement of Motor Accident claims through online mediation.