Supreme Court asks states to set up special units in police stations to speed up motor accident claims disposal

Tribune News Service

Satya Prakash

New Delhi, December 30

Expressing concern over inordinate delay in disposal of motor accident claims cases, the Supreme Court has issued detailed guidelines for registration of First Accident Report by the police immediately after a motor vehicle accident to ensure that the claim process is initiated at the earliest.

A Bench of Justice S Abdul Nazeer and Justice JK Maheshwari directed the police department of all states/UTs to develop a specialised unit and post trained police officers in every police station in three months.

“We direct that the Chief Secretary/Director General of Police in each and every State/Union Territory shall develop a specialised unit in every police station or at town level and post the trained police personnel to ensure the compliance of the provisions of the M.V. Amendment Act and the Rules, within a period of three months from the date of this order,” the Bench said.

“For the effective implementation of the MV Amendment Act and the Rules framed thereunder, the specified trained police personnel are required to be deputed to deal with the motor accident claim cases”, it said in a verdict earlier this month.

“On receiving the intimation regarding road accidents by a motor vehicle at a public place, the Station House Officer concerned should take steps as per Section 159 of the MV Amendment Act. After registering the FIR, the Investigating Officer, as per Motor Vehicles Amendment Rules, 2022, should submit the First Accident Report within 48 hours to the Claims Tribunal. The Interim Accident Report and Detailed Accident Report also should be filed before the Claims Tribunal within the prescribed time limit,” it said.

“The registering officer should verify the registration of the vehicle, driving license, fitness of the vehicle, permit, and other ancillary issues and submit the report in coordination with the police officer before the Claims Tribunal.

“The Investigating Officer shall inform the victim(s)/legal representative(s), driver(s), owner(s), insurance companies, and other stakeholders concerning the action and should take steps to produce the witnesses before the Tribunal,” it said.

“The Claim Tribunals are directed to check the offer of the Designated Officer of the insurance company with an intent to award just and reasonable compensation. After recording such satisfaction, the settlement should be recorded under Section 149(2) of the MV Amendment Act, subject to consent by the claimant(s). If the claimant(s) is not ready to accept the same, a date should be fixed for the hearing and allowing producing the documents and other evidence seeking enhancement,” it said.

The order came on a petition challenging the September 9, 2018, order of the Allahabad High Court allowing the claim petition by dependents of a deceased and awarding a compensation of Rs 31,90,000/ 2 along with 7% interest.  

The top court dismissed the appeal and reconfirmed the orders of the Motor Accidents Claims Tribunal (MACT) and High Court, holding the offending vehicle’s owner liable to pay compensation as the vehicle was being operated in violation of the terms of the permit and conditions of the insurance policy.

“The legislative intent is clear that on reporting a road accident the Investigation Officer must complete all his action within time frame and shall act as facilitator to the victim(s)/claimant(s), insurance company by furnishing all details in prescribed forms, thereby claimant(s) may get damages/compensation without delay,” it noted.

The top court directed the General Insurance Council and all insurance companies to issue appropriate directions to follow the mandate of Section 149 of the M.V. Amendment Act and the amended Rules. “The appointment of the Nodal Officer prescribed in Rule 24 and the Designated Officer prescribed in Rule 23  shall be immediately notified and modified orders be also notified time-to-time to all the police stations/stakeholders,” it ordered.

“Registrar General of the High Courts, States Legal Services Authority and State Judicial Academies are requested to sensitize all stakeholders as early as possible with respect to the provisions of Chapters XI and XII of the M.V. Amendment Act and the M.V. Amendment Rules, 2022 and to ensure the mandate of law,” the Bench said.

“The State Authorities shall take appropriate steps to develop a joint web portal/platform to coordinate and facilitate the stakeholders for the purpose to carry out the provisions of M.V. Amendment Act and the Rules in coordination with any technical agency and be notified  to the public at large,” the top court said.

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