Jald Rahat Yojana is an unique Pre-litigation Scheme for settlement of Third Party Motor Insurance Claim

Nature of Jald Rahat Yojana – The Jald Rahat Yojana came into with effect from 14 th March. 1992. This is a Pre-litigation Scheme for settlement of Third Party Motor Insurance Claims for motor accident victims.

It provides  quick  payment  of   compensation  to victims  of  road  accidents  without  their  adopting legal proceedings. In Lok Adalat only cases pending  before  MACT  are  taken  up  for  compromise  settlement,  whereas  under the Jalad Rahat Yojana injured persons or  legal heirs of the victims need not have to go to MACT at all. Cases can be straightaway taken to this forum.

The procedure – For disposal of T.P. Claims  a  panel  consisting of  following persons is constituted:

• a retired Judge,
• a medical practitioner and
• a retired executive of an insurance company having  sound  knowledge  and  clear  understanding  of  motor  accident claim cases.   This panel jointly examines individual cases on a regular basis on certain specified time and terms and offer compromise settlement of claims.  If  the  parties  accept  such  offers,  settlement can be promptly finalized.

In the initial stage, the Scheme applies to Non-fatal bodily injury claims of road accident victims above 18 years of age. It covers both “fault” and “no-fault” liability claims.  To settle any claim under this scheme the claimants’ application is to be supported by the following documents:

1. Copy of First Information Report lodged with the Police.
2. Registration number and Insurance particulars  of  offending vehicle.
3. Medical certificates in support of claim.
4. Medical bills and hospital records.
5. Proof of age and income.
6. Passport size photograph of victim.

There is no mention of any time limit for lodging claims under the Scheme. However some time limit ought to be set keeping in view the statutory limit under the Motor Vehicles Act.

Benefits of the Scheme – The Jald Rahat Yojana offers following benefits to public:

1. No Expenses’ and Litigation Free Remedy – This is a litigation free remedy to get compensation for road accidents.  The claimant is not required to incur any expenses on Court fees and lawyer’s fees. The claimant is of course free to take assistance from lawyers.
2. Early and easy settlement – the scheme provides settlement of claims within shortest possible time of 2 to 3 months.
3. Option open to go to MACT – Settlement is not binding under this scheme. If the claimant is not satisfied with the compensation offered, the offer can be rejected and the claimant can go to MACT for getting compensation.
4. Just and fair assessment of claims – The scheme offers a just and fair assessment of claims as it is done by independent panels of retired judges, medical practitioners and retired insurance executives. Settlement of T.P. Claims under this scheme is advantageous to insurance companies for the following reasons:

• The insurers get an opportunity to clear up cases without going for litigation. If many claims get settled through this machinery, it is felt that smaller number of cases will go to MACT Courts.
• The claim is deemed have been settled once and for all and there is no further litigation by way of appeal to the higher Courts;
• Speedy settlement gives satisfaction to the insured.
• Serves as a means of good publicity, good name and prestige to the insurance company.

Extracts from “Guide for Motor Insurance (IC-72)” by Dr. Rakesh Agarwal. Copyright of Sashi Publications, kolkata www.sashipublications.com and www.bimabazaar.com