SC: Lok Adalat to be Referred for Motor Accident Claims Which can be Compromised

Shashwati Chowdhury

Published on: July 31, 2022 at 20:00 IST

The Supreme Court ordered that 14,52,000 cases of compromiseable insurance claims from the High Court and the Motor Accidents Claim Tribunal (MACT) be brought before the Lok Adalat, which is scheduled to meet on August 13, 2022, for suitable orders. In order to expedite the resolution of all of these cases, it also encouraged pre-discussions among the organizers of the Lok Adalats, the High Courts, and the insurance companies.

Justice Sanjay Kishan Kaul and Justice MM Sundresh being a Bench member, hear arguments in a case where the Supreme Court was contemplating rules to speed up the process of compensating victims of auto accidents.

In this way, it satisfied a number of requirements. It emphasised the importance of taking the appropriate actions across the nation to implement the most recent statutory regime.

In its order dated 31.03.2022, the Bench had instructed insurance companies not to refuse to provide insurance simply because an exemption has been allowed under Section 146 of the Motor Vehicles Act if State Public Corporation wishes to insure its vehicles.

On or before May 15, 2022, the State Governments were asked for a response in this regard. The Bench was informed by the Additional Solicitor General, Mr. Jayant K. Sud, that only five States had submitted their answers. A few States, including Delhi, Manipur, and Assam, have made late filings, he continued.

The Bench has criticised the delay on numerous occasions. Given this, the Bench decided it was appropriate to charge the States that disobeyed its order a fine of INR 50,000 apiece as well as INR 10,000 each for their tardiness. Within four weeks, the cost is required to be deposited with the Mediation and Conciliation Project Committee. It advised calling the Chief Secretaries on the following occasion if there was noncompliance.

Mr. Sud informed the Bench that it will take an additional 4 weeks to complete the Android phone mobile app. However, because Apple phones have a higher bar for security checks, it would take longer to get it working—nearly 8 weeks. The General Insurance Council (GIC) is creating an app with the goal of expediting the resolution of third-party motor vehicle compensation claims.

Mr. Sud proposed holding workshops in each State to make it easier for the Mobile App to function. He asked the Supreme Court to order senior level DGPs to conduct these sensitive workshops.

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