National Seminar on Importance of Legal Aid at Galgotias University [Press Release]

Chief Justice Rajesh Bindal launched the Pilot Project for expeditious disposal of road accident claim cases in Noida. This Pilot Project shall revolutionize the Motor Accident Compensation Jurisprudence in as much as the claimants shall get compensation within one year of the accident without the need of filing the Claim Petition.

Under the Pilot Project (i) The police, has to complete the investigation and submit the Detailed Accident Report (DAR) before the Claims Tribunal within 90 days of the accident; (ii) The Insurance Company has to compute the compensation within 30 days and inform the Tribunal; (iii) If the amount offered is fair/acceptable to the claimant, the Tribunal shall pass the award and the claimant shall get the compensation within six months of the accident; and (iv) If the amount is not fair/acceptable or the Insurance does not accept the liability, the Tribunal shall decide the case within nine months to one year of the accident; meaning thereby that the claimant shall get the compensation within one year of the accident.

India has a dubious distinction of having the highest number of road accidents. According to the Report of Ministry of Road Transport and Highways, 4,49,002 road accidents were reported in 2019 resulting in 1,51,113 deaths i.e. an average of one road accident every 1.17 minute resulting in one death every 3.47 minute, which is the highest in the world.

Till June, 2009, the victims of road accidents were not given the compensation without filing a claim petition before the Motor Accidents Claims Tribunal even if the vehicle was validly insured. Consequently, the victims were forced to file an application for compensation before the Motor Accident Claims Tribunal and were entangled in an unnecessary, lengthy and costly litigation. Further, the law as it stood, required the claimant to prove that the driver of the offending vehicle was guilty of rash and negligent driving. The burden thus placed was very heavy and difficult to be discharge by the claimants. The records of the police investigation were not made available to the Tribunal. Due to inordinate delay in the disposal of the petition before the Motor Accident Claims Tribunal, the urgently needed relief to the claimants was not available for several years. Further time was taken in appeals. All along, the victims had to carry on without any relief.

On 21^th December, 2009, Delhi High Court, initiated legal reforms in Rajesh Tyagi v. Jaibir Singh, IV (2010) ACC 859, by formulating a Special Scheme for time bound settlement of motor accident claims within 90 to 120 days which was implemented w.e.f. 02^nd April, 2010. About 21,820 accident cases were reported in Delhi between 02^nd April, 2010 to August, 2012 out of which the Claims Tribunals awarded compensation in 10,762 cases within 90 to 120 days by following the Special Scheme. The Special Scheme revolutionized the motor accident compensation law inasmuch as the claimants received the compensation within 120 days of the accident without the need of filing a claim petition.

The Delhi High Court has gradually improved the aforesaid Scheme by various orders to ensure that the procedure for settling the claims of victims of road accident is hassle free, just and expeditious. Human lives are precious and all possible care needs to be taken to ensure that the victims receive timely relief after road accidents. The Supreme Court has directed the Delhi High Court model to be implemented all over the country.

On 08^th January, 2021, Delhi High Court modified the earlier Schemes and issued a new Scheme for Motor Accidents Claims which has been implemented in Delhi from 02^nd April, 2021. As per the new Scheme:-

(i) The Investigating Officer shall intimate the accident to the Claims Tribunal by submitting First Accident Report (FAR) in Form-I within 48 hours of the accident.

(ii) The driver and owner of the offending vehicle shall submit Form-II and III respectively within 30 days of the accident.

(iii) The Investigating Officer shall submit the Interim Accident Report (IAR) in Form-V before the Claims Tribunal within 50 days of the accident.

(iv) The victims(s) shall submit Form-VIA and VIB within 60 days of the accident.

(v) The Investigating Officer shall submit the Detailed Accident Report (DAR) in Form-VII before the Claims Tribunal within 90 days of the accident.

(vi) The Insurance Company shall submit their response before the Claims Tribunal in Form-XI within 30 days of receipt of DAR.

(vii) If the liability is admitted and amount offered by the Insurance Company is fair, the consent award shall be passed within 6 months of the accident.

(viii) If the amount offered is not fair, the Claims Tribunal shall pass an award within 9 months of the accident.

(ix) If the liability is disputed, the Claims Tribunal shall conduct an inquiry and pass an award within 12 months of the accident.

In Rajesh Tyagi’s Case, the Delhi High Court recommended to the Central Government to incorporate this Scheme in the Motor Vehicles Rules.

On 25^th February, 2022, the Ministry of Road Transport and Highways notified Central Motor Vehicles Rules, 2022 which shall come into force from 1^st April, 2022. Central Motor Vehicles Rules, 2022 are based on the Scheme framed by the Delhi High Court in Rajesh Tyagi v. Jabir Singh, 08.01.2021.