Case Title: Gohar Mohammed Versus Uttar Pradesh State Road Transport Corporation & others |
Summary
The Supreme Court has issued guidelines to expedite the claim procedure under the Motor Vehicles Amendment Act 2019, requiring police departments to establish specialized units and station trained officers within three months. The Bench of Justices S Abdul Nazeer and JK Maheshwari stated that trained police personnel are required to handle motor accident claim cases. Essential guidelines for law enforcement and insurance providers include submitting the First Accident Report, Detailed Accident Report, and Interim Accident Report within 48 hours of filing the First Accident Report. The Investigating Officer must verify the vehicle’s registration, driver’s license, fitness, permit, and other pertinent matters, and present the report to the Claims Tribunal.
The Registrar General of the High Courts distributes memoranda affixing police stations to Claim Tribunals periodically. Claim Tribunals are mandated to review the offer put forth by the insurance company’s Designated Officer to determine fair and reasonable compensation. If the claimant refuses, a date should be set for a hearing and they should be permitted to present necessary documents and evidence. The Court instructed the Registrar General of the High Courts, the States Legal Services Authority, and the State Judicial Academies to ensure compliance with the mandate of law and educate all relevant parties on provisions outlined in Chapters XI and XII of the MV Amendment Act and the MV 65 Amendment Rules, 2022.
The Registrar General of the High Courts is required to distribute police stations with Claim Tribunals attached to them to ensure compliance with the M.V. Amendment Act and its implementing regulations. The Chief Secretary/Director General of Police of each State/Union Territory must establish a specialized unit at each police station or town level to ensure compliance with the provisions of the M.V. Amendment Act and the Rules. The Claims Tribunal must record the FAR as a Miscellaneous Application upon receipt of the FAR from the police station. The Claims Tribunal shall issue appropriate orders in the aforementioned application to implement the intent of Section 149 of the M.V
The General Insurance Council and all insurance companies are mandated to issue suitable directives to ensure compliance with the provisions outlined in Section 149 of the M.V. Amendment Act and the amended Rules. If the claimant or claimants file an application under Section 164 or 166 of the M.V. Amendment Act, the Miscellaneous Application registered under Section 149 shall be sent to the Claims Tribunal immediately. The Registrar General of the High Courts, the States Legal Services Authority, and the State Judicial Academies are requested to educate all relevant parties regarding the stipulations outlined in Chapters XI and XII of the M.V. Amendment Act and the M.V. Amendment Rules, 2022.
The Allahabad High Court issued a final order in 2018 regarding a fatal accident claim, resulting in a compensation of Rs. 31,90,000/2 plus 7% interest. The vehicle’s proprietor was ordered to pay compensation due to the vehicle being operated contrary to the permit’s stipulations and breaching the insurance policy’s terms and conditions. The appellant filed an appeal with the High Court, challenging the issue of liability. The Supreme Court reaffirmed the judgments of the MACT and High Courts, stating that the Delhi High Court had established the “Claims Tribunal Agreed Procedure” to settle motor accident claims within 90 to 120 days. The Supreme Court issued a directive for the implementation of the “Motor Accident Claims Annuity Deposit Scheme” by Claim Tribunals throughout India, enacting Chapter XI, “Insurance of Motor Vehicles against Third Party Risks,” and amending Chapter XII – Claims Tribunals in accordance with the 2019 Motor Vehicle Amendment Act. The Bench dismissed the appeal and reaffirmed the judgments of the MACT and High Court in this instance.
About the case
In order to expedite the initiation of the claim procedure under the Motor Vehicles Act, the Supreme Court has issued a number of guidelines for the Police’s registration of the First Accident Report immediately following a motor vehicle accident. In order to ensure adherence to the Motor Vehicles Amendment Act 2019 and its associated regulations, the Court issued a directive to the police departments of all states, mandating the establishment of a specialized unit and the stationing of trained officers in each station within a period of three months. A Bench of Justices S Abdul Nazeer and JK Maheshwari stated, “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 handle motor accident claim cases.”
However, in regard to motor vehicle accidents, the Bench has issued the following essential guidelines for law enforcement and insurance providers to follow. Upon being notified of motor vehicle accidents occurring in public areas, the station house officer in charge should proceed with the necessary actions in accordance with Section 159 of the MV Amendment Act. The Investigating Officer is required by the Motor Vehicles Amendment Rules, 2022 to submit the First Accident Report to the Claims Tribunal within a period of 48 hours from the date of FIR registration. Additionally, the Detailed Accident Report and Interim Accident Report must be submitted to the Claims Tribunal within the specified time frame. Verify the vehicle’s registration, the driver’s license, the vehicle’s fitness, the permit, and any other pertinent matters. In collaboration with the police officer, the registering officer must present the report to the Claims Tribunal.
As specified in the Rules, the flowchart and all other documents shall be in either the vernacular language or English. The Investigating Officer is obligated to notify the victim or legal representatives, the driver, the proprietor, insurance companies, and other relevant parties about the incident. Additionally, they should initiate the necessary procedures to call the witnesses in front of the Tribunal. Registrar General of the High Courts distribution memoranda affixing the police stations to the Claim Tribunals shall be issued periodically, if not already in effect. The Claim Tribunals are mandated to review the offer put forth by the insurance company’s Designated Officer in order to determine whether to grant compensation that is fair and reasonable. The settlement should be documented pursuant to Section 149(2) of the MV Amendment Act, pending the claimant’s consent, once such satisfaction has been recorded. When the claimant or claimants refuse to accept the proposed enhancement, a date should be set for the hearing and they should be permitted to present the necessary documents and evidence. The General Insurance Council and all insurance companies were ordered by the Court to issue appropriate directives in accordance with Section 149 of the MV Amendment Act and the Rules.
Notify promptly of the designations of the Nodal Officer and Designated Officer as per Rule 24 and Rule 23, respectively. In the event that the claimant initiates legal proceedings pursuant to Section 164 or 166 of the MV Amendment Act, they are obligated to include the Nodal Officer or Designated Officer of the insurance company as a proper party in the claim petition, specifically at the location of the accident where the police station has registered the FIR. The Court instructed the Registrar General of the High Courts, the States Legal Services Authority, and the State Judicial Academies to ensure compliance with the mandate of law and to promptly educate all relevant parties on the provisions outlined in Chapters XI and XII of the MV Amendment Act and the MV 65 Amendment Rules, 2022. In the event that the insurance company contests liability, the Claims Tribunal shall have the evidence documented by the Local Commissioner. The insurance company shall be responsible for meeting the fees and expenses of the Local Commissioner in question.
In coordination with any technical agency, the State Authorities should take the necessary measures to develop a joint web portal/platform to facilitate and coordinate the stakeholders’ implementation of the MV Amendment Act and the Rules. Guidelines promulgated by the Court: i) Upon being notified of a road accident involving the operation of a motor vehicle in a public place, the relevant SHO is obligated to intervene in accordance with Section 159 of the M.V. Amendment Act. ii) Following the filing of the FIR, the Investigating Officer is required to follow the procedures outlined in the M.V. Amendment Rules, 2022 and deliver the FAR to the Claims Tribunal within a period of 48 hours. The IAR and DAR, in accordance with the Rules, must be submitted to the Claims Tribunal within the specified time frame. iii) In coordination with the police officer, the registering officer is obligated to verify the vehicle’s registration, driver’s license, permit, and eligibility for use, among other ancillary matters, and to present the consolidated report to the Claims Tribunal. iv) Unless otherwise specified in the Rules, the flowchart and all other documents shall be provided in English or the vernacular language, in accordance with the Rules. The Investigating Officer is responsible for notifying the victim’s legal representative, the driver, the proprietor, insurance companies, and other relevant parties about the actions taken in accordance with the M.V. Amendment Rules. Additionally, the officer is obligated to arrange for the witnesses to be presented on the date specified by the Tribunal. v) In order to execute directive No. (iii), it is necessary to distribute police stations with Claim Tribunals attached to them. Therefore, the Registrar General of the High Courts shall periodically, if not already done so, issue a distribution memorandum affixing the police stations to the Claim Tribunals in order to ensure compliance with the Rules. vi) Given the aforementioned discussion on the M.V. Amendment Act and Rules, the Investigating Officer assumes a critical function. It is incumbent upon him to adhere to the stipulations of the Regulations within the designated time frame.
Hence, in order to ensure the proper execution of the M.V. Amendment Act and its implementing regulations, it is necessary to assign the designated trained police personnel to handle motor accident claim cases. Consequently, we issue the following directive: within a period of three months from the date of this order, the Chief Secretary/Director General of Police of each State/Union Territory shall establish a specialized unit at each police station or town level and station trained police personnel to ensure compliance with the provisions of the M.V. Amendment Act and the Rules. The Claims Tribunal shall record the FAR as a Miscellaneous Application upon receipt of the FAR from the police station. The Investigating Officer shall affix the IAR and DAR along with the aforementioned FAR when filing them in conjunction with the Miscellaneous Application. As discussed previously, the Claims Tribunal shall issue appropriate orders in the aforementioned application in order to implement the intent of Section 149 of the M.V. Amendment Act and the Rules. VII. Claim Tribunals are instructed to consider the offer put forth by the insurance company’s Designated Officer in order to determine whether to grant compensation that is fair and reasonable.
The settlement shall be documented in accordance with Section 149(2) of the M.V. Amendment Act, contingent upon the claimant’s assent, once the satisfaction has been recorded. The date will be set for a hearing and the petition will be decided after the claimant or claimants are given an opportunity to present the documents and other evidence seeking enhancement if they are unwilling to accept the same. In such a case, the investigation shall be restricted to the extent necessary to increase compensation, with the burden of proof shifting to the claimant. ix) It is mandated that the General Insurance Council, along with all insurance companies, issue suitable directives to ensure compliance with the provisions outlined in Section 149 of the M.V. Amendment Act and the amended Rules. Notification shall be given promptly to the designated officer appointed in Rule 23 and the nodal officer appointed in Rule 24, and all police stations and stakeholders shall be periodically informed of any modifications to the orders. x) If the claimant or claimants files an application under Section 164 or 166 of the M.V. Amendment Act, the Miscellaneous Application registered under Section 149 shall be sent to the Claims Tribunal immediately by the Claims Tribunal upon receipt of the information, provided that the application under Section 164 or 166 is pending. xi) If legal representatives or claimants of the deceased have filed separate claim petitions in different High Courts’ territorial jurisdictions, the initial claim petition shall be maintained by the Claims Tribunal and subsequent claim petitions shall be transferred to the Claims Tribunal where the initial claim petition was filed and is pending.
It is explicitly stated in this case that claimants are not obligated to submit an application to this court in order to transfer other claim petitions, even if those petitions were filed in the territorial jurisdiction of distinct High Courts. As directed by this Court, the Registrar Generals of the High Courts shall take the necessary actions and issue the necessary orders in this regard. xii) In the event that the claimant initiates legal proceedings pursuant to Section 164 or 166 of the M.V. Amendment Act, respectively, they are obligated to include the Nodal Officer or Designated Officer of the insurance company as respondents in the claim petition as a proper party at the police station where the FIR was filed at the location of the accident. The Claims Tribunal may be assisted by those officers in elucidating the course of action pursued pursuant to Section 149 of the M.V. Amendment Act. xiii) It is requested that the Registrar General of the High Courts, the States Legal Services Authority, and the State Judicial Academies expeditiously educate all relevant parties regarding the stipulations outlined in Chapters XI and XII of the M.V. Amendment Act and the M.V. Amendment Rules, 2022, in order to uphold the legal mandate. xiv) In accordance with the mandate of Rule 30 of the M.V. Amendment Rules, 2022, it is stipulated that in the event that the insurance company contests its liability, the evidence shall be recorded by a Local Commissioner on behalf of the Claims Tribunal; the insurance company shall be responsible for the fee and expenses of the Local Commissioner. xv) The State Authorities are obligated to undertake suitable measures to establish a collaborative web portal or platform that will facilitate and coordinate the efforts of stakeholders in carrying out the regulations outlined in the M.V. Amendment Act and the Rules.
This shall be done in collaboration with a technical agency and with the public’s knowledge. A petition challenging the final order issued by the Allahabad High Court on September 9, 2018 was being heard by the Bench. The MACT granted approval to the petition regarding a fatal accident claim in 2018 and assessed a compensation of Rs. 31,90,000/2 plus 7% interest. The annual income of the deceased was incorporated into the loss of dependency calculation as Rs. 3,09,660/. It was determined that the vehicle was being operated contrary to the permit’s stipulations and in breach of the insurance policy’s terms and conditions; consequently, the vehicle’s proprietor was ordered to pay compensation. The appellant filed an appeal with the High Court, challenging the issue of liability. In doing so, he argued that no violation of guidelines had occurred and that the liability for the offending vehicle was covered by insurance, with the insurance company providing indemnification. Additionally, the appellant maintained that he possessed Temporary Special Authorization to operate the vehicle along the route for which payment was made. However, the High Court upheld the conclusions of MACT and determined that the vehicle owner was unable to contact the Transport Department representative due to his failure to produce the original permit and inability to obtain the same proof.
The party, incensed, petitioned the Supreme Court. The Supreme Court initially observed that the Delhi High Court had established the “Claims Tribunal Agreed Procedure” in Rajesh Tyagi’s case to ensure that motor accident claims were settled within 90 to 120 days. The court had also mandated that the procedure be implemented exclusively for trial purposes as a pilot project for a duration of six months in 2010.In addition, the High Court ordered the Delhi Police to develop a “Accident Investigation Manual” in preparation for the CTAP’s implementation. “The outcome brought about a significant transformation in the Motor Accident Compensation Scheme, which resulted in the 13 claimants receiving their compensation within 120 days of the accident,” the Bench observed. The ‘Modified CTAP’ was mandated for implementation by all states by the highest court in 2017. However, the Supreme Court was informed in M.R. Krishna Murthi vs. The New India Assurance Co. Ltd. that claim tribunals throughout India had failed to implement the modified CTAP in an effective manner. Following that, the Court issued a directive to the National Legal Services Authority to address the issue and oversee it in collaboration and operation with multiple High Courts.
Additionally, State Judicial Academies were instructed to educate senior police officials, insurance companies, and presiding officers of claim tribunals regarding the implementation of the modified CTAP. In conclusion, this Court issued a directive for the implementation of the “Motor Accident Claims Annuity Deposit Scheme” by Claim Tribunals throughout India. Chapter XI, “Insurance of Motor Vehicles against Third Party Risks,” was subsequently enacted. In addition, Chapter XII – Claims Tribunals was modified in accordance with the 2019 Motor Vehicle Amendment Act. The Bench expressed its opinion on Section 146, which addresses the necessity of motor vehicle insurance, stating, “Upon careful examination of the MV Amendment Act, specifically Section 146 of Chapter XI, it becomes evident that an uninsured motor vehicle is neither permitted to operate on public spaces nor be used in such areas.” An insurance exemption has been established for vehicles possessed by the Central Government, State Government, local authority, or any State Transport Undertaking, provided that their use is not associated with a commercial enterprise. The Bench also reviewed the pertinent provisions necessary to bring the compensation claim before the Tribunal. The Bench dismissed the appeal and reaffirmed the judgments of the MACT and High Court in this instance.
