Swarna Shukla-
Published On: November 06, 2021 at 12:47 IST
The Central Government and the Insurance Companies informed the Supreme Court that they agreed to settle the payment of compensation to the road accident victims through mediation, which probably at best would take over three months.
A report prepared by Additional Solicitor General (ASG) Jayant Sud, presented before a Bench of Justice Sanjay Kishan Kaul and MM Sundresh. However, the Court will consider the suggestion in the next hearing on 16th November.
The Top Court was informed about the mediation process when it was considering the passing directions for a speedy resolution of cases pending under the Motor Accidents Claims Tribunal (MACT).
The Additional Solicitor General, Jayant Sud in his report mentioned that the Justice Delivery System is choked due to the pendency of the cases.
Sud suggested that through mediation the Insurer could file the offer for settlement before MACT within 30 days of receipt of the detailed accident report from Police or MACT.
After receiving the offer the Tribunal would refer the Claimant and Insurer to the Motor Accident Mediation Cell or Online Dispute Centre to consider the Insurance company’s offer.
The Online Dispute Center will have to submit a report within 30 days to MACT, mentioning the consent of the parties along with the justification for arriving at the compensation. The parties will have the option to reject the offer too.
If the parties arrive at a settlement, the MACT will act upon the mediation cell’s report and will pass an order with a recording of both of the parties consent before the closing of the case.
The report further proposed the mediation fees shall be paid by the Insurance firm if the settlement amount is below ₹25 lakh.
In cases where the amount exceeds ₹25 lakh, the burden of fees shall be borne jointly by the Claimant and Insurance firm.
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