The Ministry of Road Transport and Highways (MoRTH), insurance companies and state police departments are developing a proposal to reduce the time needed for claims' settlement for accident victims, according to a report in Livemint.

The average time required as of now is five years, which is expected to be just three months in the new plan.

"Every year, claims worth at least Rs 10,000-12,000 crore are raised by road accident victims. Of this, insurers pay at least Rs 5,000 crore on average. The rest of the amount remains disputed, and the court cases go on for years, which increases the distress for victims' families," Source in the know told the reporter.

"The settlement should be completed within a month. Right now, it often takes 5-10 years. The aim is to make settlements faster and more acceptable for the victim's family," he added.

Road accident victims and their families will also be able to avail prompt financial support based on a method developed by the Supreme Court, Motor Accident Claims Tribunal (MACT) and high courts as per the new scheme.

The Supreme Court, on 15 March, instructed that the police will have to submit the formal accident report electronically to General Insurance Council (GIC) and MACT within 48 hours, explaining the cause of the accident.

"The detailed accident report (DAR) has to be submitted by police within a month, and MACT will have to accept the applications and reports via email. Within a month, MACT will have to conclude the case, and then the insurer needs to send the money electronically to the deceased's family," Source further detailed.

The insurer will appoint its own investigator to visit the accident spot and collect the primary records of the victim, the vehicle and the details of the accident right after the intimation of the accident to expedite the settlement process.

Currently, the police's DAR goes to court, and the insurer is notified 1-2 years after an accident. There is also a delay in evidence collection after the accident.

MACT then summons the insurer, victim's family and police after a fortnight, asking them to be present for a hearing in the following 45 days, while hearing continues for a further fortnight.

In the new scheme of things, MACT will have to send the DAR and the summon notice within a week and conduct the first hearing via video-conferencing within a month and subsequently close the case in 90 days.

The proposed plan has been put in effect in Delhi from 1 May as a pilot project.

Motor Accident Claims Tribunal (MACT)

Get Swarajya in your inbox.