SC asks Centre to set up Motor Accidents Mediation Authority if feasible

Supreme Court: When a practicing advocate, had suffered in nasty accident at the young age of 18 years, in which his entire left leg was crushed, approached the Court with the plea seeking reform in the Motor Vehicle Accident Claims system, the bench of Dr. AK Sikri and SA Nazeer, JJ asked the Government to consider the feasibility of enacting Indian Mediation Act to take care of various aspects of mediation in general.

The Court also issued the following directions:

  1. The Government may examine the feasibility of setting up Motor Accidents Mediation Authority (MAMA) by making necessary amendments in the Motor Vehicles Act.
  2. In the interregnum, NALSA is directed to set up Motor Accident Mediation Cell which can function independently under the aegis of NALSA or can be handed over to MCPC. Such a project should be prepared within a period of two months and it should start functioning immediately thereafter at various levels as suggested in this judgment. We reiterate the directions contained in order dated November 6, 2017 in Jai Prakash case for implementation of the latest Modified Claims Tribunal Agreed Procedure. For ensuring such implementation, NALSA is directed to take up the same in coordination and cooperation with various High Courts. MACAD Scheme shall be implemented by all Claim Tribunals on All India basis. Banks, Members of Indian Banks Assocation, who had taken decision to implement MACAD Scheme would do the same on All India basis.
  3. The Government should look into the feasibility of framing necessary schemes and for the availability of annuity certificates. This exercise may be done within the period of six months and decision be taken thereupon.
  4. There should be programmes from time to time, in all State Judicial Academies, to sensitizing the Presiding Officers of the Claims Tribunals, Senior Police Officers of the State Police as well as Insurance Company for the implementation of the said Procedure.

The appellant had prayed for:

  • On-road safety and grant of adequate compensation to the victims without any delay. For ensuring expeditious settlement of claims, resort to alternate means which may include innovative measures.
  • Taking adequate steps including adopting innovative measures, to ensure fast track disposal of cases by MACTs.
  • Ensuring receipt of compensation in the safe hands of victims and/or kiths and kins of victims, that too over a sustained period.

[MR Krishna Murthi v. New India Assurance Co. Ltd., 2019 SCC OnLine SC 315, decided on 05.03.2019]

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