SUMMARY OF IMPORTANT JUDGMENTS/ORDERS

OF DELHI HIGH COURT

AND THE EFFECT OF THEIR IMPLEMENTATION

S. Judgments/Orders passed by Delhi High Court Effect of implementation of the

No. said order
(1) (2) (3)

I. Enforcement of Section 158(6) of the Motor Vehicles Act, 1988 – Directions issued by Delhi High Court in
the case of Rajesh Tyagi Vs. Jaibir Singh, FAO 842/2003 vide orders dated 08.6.2009 and 5.11.2009.

 Section 158(6) of the Motor Vehicles Act was incorporated in 1994 and it provides that the SHO of the Police Station shall send
The directions given to the police will
Accident Information Report (AIR) to the Claims Tribunal within 30 days of the recording of the FIR and a copy to the
expedite the settlement of claim by
concerned Insurance Company. The object of Section 158 (6) of the Motor Vehicles Act is that the police is the first agency to
the insurance companies and the
take cognizance of the accident and it has the entire evidence required for initiating the proceedings for compensation.
payment of compensation to the
victims of road accidents.
 Direction has been given to Delhi Police to submit the Accident Information Report under Section 158(6) of the Motor Vehicles
Act with the Claims Tribunals within 30 days of the accident along with attested copy of the FIR, site plan, photographs,
registration cover, driving licence, insurance policy, permit, fitness certificate, MLC and post-mortem report.

 Police has also been directed to give the copy of the Accident Information Report along with aforesaid documents to the
insurance companies.

 Delhi Police has started following initiatives to implement Section 158(6) of the Motor Vehicles Act:-

(i) Delhi Police has started a website (www.dpacciclaim.in) in which all relevant information/documents are placed
which can be downloaded by the claimants, Insurance Companies as well as Tribunals.
(ii) Registers to be maintained at police station level indicating the details such as FIR Number, date of dispatch of
Form 54 to the learned MACT, etc. A column containing details of information not included in Form 54 along with
reasons for its non availability shall also be maintained in the register.
(iii) Delivery of FIR to the Claims Tribunals on the date of registration.
(iv) Entries in red ink in FIR index about date of dispatch of Accident Information Report (hereinafter referred to as
AIR).
(v) Checking of AIR (Form 54) dispatch records mandatorily during six monthly inspections by Gazetted Officer.
(vi) ACsP/SHOs shall forward final reports to the Magistrate only on production of dispatch of AIR (Form 54) to the
learned MACT, owner and insurer of the offending vehicle and the victim/his or her family.
(vii) MACT Monitoring Cell headed by Inspector to be set up in each District to monitor delivery of AIR (Form 54) in

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 time.
(viii) Monthly meeting of ACsP, PG Cell, In-charge of MACT Monitoring Cells with the Claims Tribunals.
(ix) Appointment of Naib Court (a police officer) by District DCsP with the Claims Tribunals.
(x) Review of pendency of AIR (Forms 54) by District DCsP in weekly law and order meeting.
(xi) Placement of AIR (Form 54) on the website so that it can be downloaded by the Claims Tribunals, Insurance
Companies and claimants.
(xii) Installation of checklist boards in SHOs rooms.
(xiii) Establishment of District Cells as pilot project in three districts.

 The Delhi High Court has passed following directions to Delhi Police on 8 th June, 2009:-
“(i) In terms of the said undertaking of the Delhi Police, the Accident Information Report (Form 54) be
submitted with the concerned Motor Vehicles Tribunal within 30 days of the registration of FIR of accident.
The Accident Information Report shall contain the following additional information:-

“14. In case of death: Names and address of the next of kin of the deceased.
15. In case of injury: Nature of injuries suffered
16. Names and addresses of the eye-witnesses.
17. In case of transport vehicles:
(i) Particulars of the permit.
(ii) Particulars of the fitness certificate”.

(ii) The Accident Information Report shall be accompanied by the attested copies of the FIR, site plan,
photographs, registration cover, driving licence, insurance policy, permit and fitness certificate of the
offending vehicle. MLC and Post - mortem report shall be submitted as soon as they are received. If any
of the aforesaid information or document is not available at the time of submitting the AIR, the same may
be submitted as soon as the same is received.

(iii) Simultaneously upon filing of AIR by the SHO with the Claims Tribunal, the copy of the AIR be furnished to
the Insurance Company along with the aforesaid documents.

 Directions to Delhi Police regarding pending cases for the period between 1994-2009
Delhi Police has started compliance of Section 158(6) of the Motor Vehicles Act w.e.f. 8th June, 2009 after the order of this
Court. However, there has been no compliance during the period 14th November 1994 up to 7th June, 2009 which has
caused grave prejudice to the victims of the road accident. The Delhi High Court has issued following directions to the Delhi
Police on 5th November, 2009 with respect to the pending cases:-

(i) The Delhi Police shall file Accident Information Reports under Section 158(6) of the Motor Vehicles Act in respect of

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 all the pending cases filed before the Claims Tribunals after 14th November, 1994.

(ii) The Delhi Police shall collect the list of all pending cases filed after 14th November, 1994 from the Claim Tribunals
and shall file the Accident Information Reports at the time of the hearing of the claim cases before the learned
Tribunal.

(iii) The service of summons on the driver, owner and eye-witness in all pending cases, if not effected, shall be effected
through the Delhi Police who shall ensure their service and production before the concerned Claims Tribunal.

(iv) The Delhi Police shall also place on record the relevant documents before the Claims Tribunal including FIR,
MLC/post mortem report, site plan, driving licence, registration cover, Insurance policy, fitness, permit, etc. at the
time of hearing of the cases before the Claims Tribunal.

(v) The Delhi Police has already deputed a Naib Court with every Claims Tribunal. The Naib Court shall remain present
at the time of hearing of all the cases and the Claims Tribunal shall pass the appropriate order for filing of the
report under Section 158(6), service of the owner, driver and eye-witness or production of documents as the case
may be. The copy of such orders shall be given dasti to Naib Court whereupon the Naib Court shall note down the
next date of hearing of the cases, coordinate with the concerned Police Stations and provide the status report of
those cases to the Court on the next date of hearing. The compliance of this order shall be done by Delhi Police in
a phased manner.

(vi) In the event of non-compliance of this order by Delhi Police, the concerned Tribunal shall bring the same to the
notice of the ACP concerned in the monthly meeting between Claims Tribunals and the ACsP in terms of order
dated 8th June, 2009.

II. Enforcement of Section 166(4) of the Motor Vehicles Act, 1988 – Directions issued by Delhi High Court in
the case of Rajesh Tyagi Vs. Jaibir Singh, FAO 842/2003 – vide order dated 08.6.2009.

 Section 166 (4) of the Motor Vehicles Act was also incorporated in 1994 and it provides that the Claims Tribunal shall treat the All the Motor Accident Claims
Accident Information Report (AIR) under Section 158(6) as a claim petition. The object of Section 166(4) of the Motor Vehicles Tribunals have set up the aforesaid
Act is that poor and helpless victims of the road accident may be ignorant of their rights and, therefore, the cognizance of the system for compliance of Section
claim for compensation be taken by the Claims Tribunal directly on the basis of the Accident Information Report of the police 166(4) of the Motor Vehicles Act,
without the requirement of a separate claim petition to be filed by the claimant. However, this provision was not being 1988.
enforced as the police was not filing the Accident Information Report with the Claims Tribunal. With the undertaking of the
police and the directions of the High Court to the police to strictly enforce Section 158(6) of the Motor Vehicles Act, the Delhi The net effect of aforesaid directions is
High Court has given following directions to the Motor Accident Claim Tribunals on 8 th June, 2009 for enforcement of Section that the Delhi Police is filing Accident
166(4) of the Motor Vehicles Act:- Information Report along with the
relevant documents including driving

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 “(i) Maintenance of a register for recording of the FIR which shall be received daily from the police stations. The licence, registration cover, insurance
Accident Information Report and private claim petition filed in respect of an FIR be marked in this register. policy, fitness and permit of the
(ii) Maintenance of a separate institution register for registering the AIR as miscellaneous application. offending vehicle, before the Tribunal
(iii) Listing of AIR on the judicial side and issuance of notice to the claimant, owner, driver and Insurance within 30 days of the accident.
Company. Simultaneously, the Investigating
(iv) Notice to the claimant, owner and driver be served through the Investigating Officer. Officer is also producing the owner,
(v) Notice of Insurance Company be served through the nominated counsel of each company. driver, eye-witness and the claimants
(vi) AIR be listed as a separate category in the cause list as miscellaneous application. before the claims Tribunal. Insurance
(vii) After appearance of the claimant, the AIR be registered as a claim petition. Companies are already represented
(viii) If the claimant has filed a separate claim petition, the AIR be tagged with the claim petition.” through their retainers and the Claims
Tribunals straight away proceed to
record the statements of all
concerned, verify the documents and
pass an award. 25 cases of accident
have been settled by the Claims
Tribunals from 1st July, 2009 to 20th
July, 2009 on the basis of the AIR filed
by Delhi Police.

III. Directions to Insurance companies in the case of Rajesh Tyagi Vs. Jaibir Singh, FAO 842/2003 – Orders
dated 08.6.2009 and 5.11.2009
 The Insurance Companies have not been settling the claims of the victims of the road accident on the ground that they have
no notice/intimation of the road accident until the receipt of the notice from the Claims Tribunal. With the enforcement of The victims of the road accident shall
Section 158(6) of the Motor Vehicles Act, the SHO of the Police Station is serving the copy of the Accident Information Report get the compensation without any
along with all the relevant documents on the Insurance Company at the time of filing of the Accident Information Report with delay with the deposit of the admitted
the Claims Tribunal. The Insurance Companies now have sufficient notice of the claim and they can verify the same and amount by the Insurance Company.
settle the claim.
 The Insurance companies have been directed to investigate the claim upon receipt of the AIR in terms of their Third Party
Claim Procedure Manual and to submit their reply along with the copy of the investigation report and the computation of
compensation according to them before the Claims Tribunals within 60 days wherever the accident, driving licence, permit,
evidence and other documents relate to Delhi and within 90 days where the documents relate to outside Delhi. If there is no
defence under Section 149 of the Motor Vehicles Act, 1988, the Insurance Companies have been directed to deposit the
admitted amount according to their computation with their reply before the Claims Tribunal. The copy of the AIR furnished by
the Police to the Insurance Company shall be sufficient notice of the institution of the claim petition before the Claims
Tribunal.
 In order to streamline the system, it is directed that henceforth immediately upon receipt of intimation of the claim, the
Insurance Companies shall first appoint a competent designated officer who shall be responsible for processing and taking a
decision in respect of that claim and the name of such officer shall be disclosed in the reply/written statement to be filed

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 before the Claims Tribunal. The designated officer so appointed shall appoint an Investigator and after receipt of report of the
Investigator, the designated officer shall take the reasoned decision in writing as to the amount payable to the claimants in
accordance with law. The decision of the designated officer on the claim shall be filed along with the reply/written statement
before the Claims Tribunal. If the learned Tribunal comes to the conclusion at the time of deciding the claim that the
designated officer had delayed or defeated the claim, appropriate order shall be passed by the learned Tribunal in respect of
the designated officer at the time of passing the award.

 With respect to the pending cases relating to Motor Accident Claims in Delhi, all the Insurance Companies are directed to
appoint a designated competent officer responsible for processing of each case within 10 days and such officer shall process
the claim within 30 days and pass a reasoned order in writing about the amount payable in accordance with law. The order of
the designated officer along with the report of the Investigator shall be filed before the learned Tribunal within 20 days of the
date of the order of the designated officer.

IV. Special Scheme for Settlement of Motor Accident Claims within 120 days in respect of accidents during
15.1.2010 to 14.7.2010.

 Vide order dated 5th November, 2009 in MAC.APP.236/2009 & 238/2009, Delhi High Court constituted a Committee The victims of the road accident shall
comprising of Secretaries/nominees of the Ministries of Road Transport and Highways; Finance (Department of Insurance); get compensation within 120 days of
Law & Justice and Company Affairs; and Joint Commissioner of Delhi Police. The Committee consulted all the 17 Insurance the accident under the Special
Companies and with their consent, prepared Claims Tribunal Agreed Procedure which was approved by Delhi High Court. Scheme.

 Delhi Police agreed to implement the said procedure on trial basis as a pilot project for a period of six months.

 The salient features of the Claims Tribunal Agreed Procedure approved by the Delhi High Court are as under:-

(i) The Investigating Officer of the Police shall intimate the accident to the Claims Tribunal within 48 hours of the
accident. The particulars of the accident shall be uploaded on the website of the Delhi Police and the intimation
shall also be given to the Insurance Companies.

(ii) The Insurance Company shall appoint a designated officer who shall be responsible for dealing/processing of that
case.

(iii) The investigating officer of the Police shall collect the relevant evidence relating to the accident as well as
computation of compensation and shall complete the investigation within 30 days.

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 (iv) The Investigating Officer of the Police shall file the Detailed Accident Report (DAR) with the Claims Tribunal within
30 days of the accident with a copy to the Insurance Company, claimant and Delhi Legal Services Authority.

(v) The Investigating Officer shall produce owner, driver, claimant and eye-witness before the Claims Tribunal along
with the Detailed Accident Report.

(vi) The Insurance Company shall take a decision as to the quantum of compensation payable to the Claimants and
submit the decision before the Claims Tribunals within 30 days of the Detailed Accident Report.

(vii) The amount assessed by the Insurance Company shall constitute a legal offer to the claimants who shall submit
their response within 30 days. If the offer is acceptable to the claimants, the Tribunal shall pass a consent award
and the Insurance Company shall make the payment of the award amount to the claimants within 30 days.

(viii) If the offer of the Insurance Company is not acceptable to the claimants or the Insurance Company has any defence
available under law, the Claims Tribunal shall conduct an inquiry under Section 168 and 169 of the Motor Vehicles
Act and shall pass an award within a period of 30 days thereafter.

 Vide order dated 15th January, 2010, the High Court has directed that the Pilot Project shall commence from 2 nd April, 2010. In
the meantime, the Committee appointed by the Court has been directed to examine cashless treatment of the victims of the
road accidents by incorporating Clause 3(3) in the Claims Tribunal Agreed Procedure which is reproduced hereunder:-

“3(3). In case of grievous injuries suffered by a victim of the road accident who may require some surgery
or shifting to some other hospital for better treatment, the Investigating Officer of the Police shall verify the
existence of the Insurance policy in the first instance and shall submit the verification report and the copy
of the Insurance policy along with the Report under Clause 3(2) to the Claims Tribunal within 48 hours of
the accident whereupon the Claims Tribunal shall, after hearing the Insurance company and satisfying itself
about the existence of the Insurance policy, direct the Insurance company to directly pay the hospitalization
charges to the concerned hospital. However, this payment by the Insurance company shall be subject to
the final outcome of the claim and in the event of Insurance company having legal defence available to it to
avoid the liability, recovery rights in respect of such amount paid by the Insurance company shall be given
by the Claims Tribunal to the Insurance company to recover the same from the driver and owner of the
offending vehicle. The Claims Tribunal shall send the said order to the concerned hospital. If the Tribunal
finds that the victim of the road accident needs shifting to some other hospital for better treatment then
the Tribunal shall also pass appropriate order in this regard.”

 The Committee appointed by the Court has to submit its report to the High Court on 15 th February, 2010.

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V. Suggestions for Amendment of Motor Vehicles Act, 1988.
 On 14th September, 2009, Ministry of Road Transport and Highways, Government of India constituted an Expert Committee to The Expert Committee appointed by
review the Motor Vehicles Act, 1988 in a comprehensive manner, study the corresponding law in leading Asian countries and the Ministry of Road Transport and
make appropriate recommendations for the amendment in the Act. This was reported in the newspaper on 22 nd September, Highways is considering the
2009. suggestions of the High Court.
 Vide order dated 25th September, 2009 in FAO No.842/2003, Delhi High Court advised the Government to examine law
relating to Motor Accident Claims in South Africa which provides that all vehicles on road are insured for third party risk and
the owners of the vehicles are not required to take the insurance policy for third party liability. A surcharge is added to the
cost of petrol/diesel and the amount so collected is sent to Road Accident Fund which is managed by Road Accident Fund
Commission.
The Road Accident Fund Commission manages and disburses the Road Accident Fund. The Commission also enquires into
and makes recommendations regarding the system for computation and disbursement of compensation to the victims of road
accident. The Commission also examines the factors responsible for the accidents such as excessive speed, influence of
alcohol, vehicle fitness, overloading, poor brakes and road environmental conditions including poor maintenance of road
surface and inadequate signs and markings. The Commission also makes contribution of Fuel Levy Fund for
campaign/programmes to promote road safety.

The South African model system shall also save the cost of manpower used by Insurance companies to issue policies. The
report of Road Accident Fund Commission in South Africa is available on the website,
http://transport.gov.za/library/docs/raf/index.htm.

 Vide order dated 18th November, 2009 in MAC.APP.287/2008, the Delhi High Court has given the following suggestions to the
Government:-
(i) Strict rules regarding issuance of driving licence.
(ii) Computerization of the driving licences and issuing all over the country.
(iii) Severe punishment for fake licence. (At present, no action is taken for the offenders involved in the
racket of issuing fake licences. Rather the victims of the road accidents suffer because the
Insurance Company avoids the liability on the ground of fake licence).
(iv) Higher punishment for drunken driving.
(v) Separate punishment for the accused who runs away from the spot after causing the accident.
(vi) Separate punishment for removing the vehicle from the spot of the accident and
prohibition/punishment for the workshop who repairs the vehicle without clearance by the police.
(vii) Improvement of road condition.
(viii) Removal of unsafe vehicles from the road.
(ix) Special cell of the police to enforce the law as well as for investigation/inquiry into the accident
cases.
(x) The computerization of the records of registration and insurance of the vehicles. The Insurance

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 Policy number of all the vehicles should be duly recorded with the registration authorities so that
immediately after the accident, the police can find out the Insurance Policy number and send an
intimation to the Insurance Company.

VI. Protection of the Award amount.

 To protect the award money from being wasted, vide order dated 21 st April, 2009 in MAC.APP.No.130/2009, Delhi High Court Most of the victims of the road
has directed LIC, RBI, SBI and PNB to formulate a special scheme for victims of road accident in which higher rate of interest is accident are from the lowest strata of
provided and the amount is kept in such a manner that the monthly payment to the victims of the road accident increases the society and sole bread winners
10% every year to meet the inflation. leaving behind large family. There is
illiteracy in the country and minor
 UCO Bank and State Bank of India have formulated a special scheme for victims of road accidents on the directions of the children are involved. The legal
High Court. The salient features of the scheme of UCO Bank are as under:- representatives of the deceased have
(i) The fixed deposit shall be automatically renewed till the period prescribed by the Court. no knowledge of investment and
(ii) The interest on the fixed deposit shall be paid monthly. saving. There is a danger of the
(iii) The monthly interest shall be credited automatically in the saving account of the claimant. money being wasted or even the
(iv) Original fixed deposit receipt shall be retained by the bank in safe custody. However, the original passbook shall be victims being cheated. It was noted
given to the claimant along with the photocopy of the FDR. that there is no uniform system for
(v) The original fixed deposit receipt shall be handed over to the claimant at the end of the fixed deposit period. passing directions of fixed deposit and
(vi) Photo identity card shall be issued to the claimant and the withdrawal shall be permitted only after due verification even the direction for fixed deposit
by the Bank of the identity card of the claimant. varies from 3 to 10 years and it is not
(vii) No cheque book shall be issued to the claimant without permission of the Court. clear what happens to the money
(viii) No loan, advance or withdrawal shall be allowed on the fixed deposit without permission of the Court. thereafter.
(ix) The claimant can operate the saving bank account from the nearest branch of UCO Bank and on the request of the
claimant, the bank shall provide the said facility. The scheme formulated by this Court
(x) Half yearly statement of account shall be filed by the UCO Bank with the High Court/Tribunal. shall protect the money of the victims
(xi) UCO Bank has appointed Mr. M.M. Tandon, Member-Retail Team, UCO Bank Zonal, Parliament Street, New Delhi, of the road accident.
Mobile No. 09310356400 who shall co-ordinate with the High Court and the various Tribunals for opening of the Fixed
Deposit and Saving Bank Account for the victims of the road accidents.

 In MAC.APP.682/2005, it was brought to the notice of this Court that after the deposit of cheques by the Insurance Companies
with the Claims Tribunal, no intimation was given to the claimants and in many cases, by the time, the claimant gets the
information of deposit of the cheque, the cheque has already expired. It was stated that in many cases, the cheques have
also been lost. Vide judgment dated 13th January, 2010, the High Court observed that this problem can be resolved by
directing the Insurance Companies to directly deposit the award amount with the bank with the direction to the bank to keep
specified amount in fixed deposit in terms of the award and release the balance amount by transferring the same to the
Saving Bank Account of the victim/claimant. All the Motor Accident Claims Tribunals were, therefore, directed to henceforth
direct the Insurance Companies to directly deposit the award amount in the bank within 30 days with further directions as to

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 the disbursement of the same in terms of the award and the case be kept pending till the compliance is placed on record.

 In MAC.APP.135/2008, it was pointed out by the learned counsel for the claimants that the Claims Tribunals were passing
directions for releasing part of the award amount and the remaining amount was kept in fixed deposit for a long period due to
which the claimants are unable to meet their exigencies and have to approach the Tribunal again and again for release of the
award amount. It was suggested by learned counsel for the claimants that a direction be given to the Claims Tribunal to keep
the amount in fixed deposit in such a manner that the claimants get the award amount in a phased manner which will take
care of their exigencies such as illness, marriage of children, education etc. Vide order dated 20th January, 2010, the High
Court directed that the Claims Tribunal shall consider keeping the award amount in fixed deposit in a phased manner
depending upon the financial status and financial needs of the claimants. For example, if a sum of Rs.5,50,000/- has been
awarded to the claimants, Rs.50,000/- may be released immediately and the remaining amount of Rs.5,00,000/- may be kept
in 10 fixed deposits of Rs.50,000/- each for a periods of six months, one year, one and a half years, two years and so on till
five years or one year, two years, three years and so on till ten years. If the family of the claimants have school/college going
children, the maturity period of the fixed deposit receipts be kept preferably in the month of ‘March’ every year so that the
family is able to meet the annual expenses towards the admission and tuition fee of the children.

 In MAC.APP.633/2009, vide order dated 22nd February, 2010, the High Court has directed that since the FDRs have to be
retained by the Bank, Bank need not prepare the FDRs. Instead, the Bank may issue the passbook of the fixed deposit
account in which the fixed deposit amount as well as the interest paid are reflected and as and when the fixed deposit gets
matured, the maturity amount should automatically be credited in the Saving Bank Account of the beneficiary. This will save
the botheration of the bank to prepare the FDRs and it shall also save the botheration of the beneficiary to approach the bank
again and again for discharge of the FDR. The effect of this modification would be that the bank will issue two passbooks to
the beneficiary, one in respect of the Saving Bank Account in which the monthly interest and the maturity amount of the fixed
deposit would be credited and the other in respect of fixed deposit account.

VII. ENFORCEMENT OF ORDER XXI RULE 1 OF THE CODE OF CIVIL PROCEDURE AND THE
DIRECTIONS OF DELHI HIGH COURT PASSED IN THE CASE OF NEW INDIA ASSURANCE
COMPANY LTD. VS. KASHIMIR LAL 2007 ACJ 688

 Order XXI Rule 1(a) and (2) of the Code of Civil Procedure provides that the judgment debtor (Insurance company) shall give The enforcement of Order XXI Rule 1
notice of deposit of the award amount to the decree-holder (claimant) either through Court or directly to the decree-holder of the Code of Civil Procedure and the
(claimant). Order XXI Rule 1(4) of the Code of Civil Procedure provides that the interest shall cease to run from the date of directions of this Court passed in the
service of the notice referred to in Sub-Rule (2). case of New India Assurance
Company Ltd. Vs. Kashimir Lal,
 It was pointed out to the Court that neither the Insurance Companies give any notice of deposit to the Claimants nor the 2007 ACJ 688 shall ensure timely
Claims Tribunal give notice of deposit to the claimants as a result of which the claimants do not get the payment on time and payment to the claimants without any

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 due to delay, the Insurance companies use the money of the claimants without making payment of interest. harassment and in the event of any
delay, the claimant would get interest
 It was also noticed by the High Court that the Claims Tribunals and the Insurance Companies do not follow the directions up to the date of notice.
given by Delhi High Court in the case of New India Assurance Company Ltd. Vs. Kashimir Lal, 2007 ACJ 688.

 Vide order dated 27th January, 2010, the following directions have been given to the Claims Tribunals and the Insurance
Companies:-
“13. All the Claim Tribunals are directed to send a report of compliance of Order XXI Rule 1(2) and (4) of the
Code of Civil Procedure within a period of two weeks. The report be filed initially in respect of last one year.
The report should contain the following particulars in tabular form:-

(i) Case title and number.

(ii) Date of award.
(iii) Award amount.
(iv) Date of deposit of cheque of the award amount.
(v) Date of notice by the Insurance company to the claimant.
(vi) Date of notice by the Claims Tribunal to the claimant.
(vii) Date of release of the cheque towards the award amount to the claimant.
(viii) Period for which the claimant is entitled to interest under Order XXI Rule 1(4), CPC.
(ix) Amount of interest to which the claimant is entitled under Order XXI Rule 1(4), CPC.
(x) Amount of the interest actually awarded to the claimant under Order XXI Rule 1(4), CPC.

14. The Report should also indicate as to how many cheques are presently deposited with the Claims Tribunals
for being released to the claimants, how many cheques have expired and whether any cheques have been lost.

15. A separate report should indicate the format in which the Nazirs are maintaining the record; to consider
whether it enables convenient access to the relevant information. Further, if there be room for improvement, the
Claims Tribunals may indicate a possible revised format.

16. The Claims Tribunals are also directed to submit a report whether the Insurance companies have furnished
the details of the bank account and the bank in all pending cases in terms of the judgment dated 9th December,
2005 of this Court in the case of New India Assurance Co. Ltd. (supra). The number of cases in which such
details have been furnished and the number of cases in which such details have not been furnished be mentioned
in the report. The list of cases in which the recovery of the award amount and the cost of Rs.5,000/- has been
effected by attachment of Bank account during last one year in terms of the directions of this Court be also
furnished.

17. The Report of all the Claims Tribunals be submitted before the Registrar (Vigilance) of this Court within two

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 weeks. The Registrar (Vigilance) shall also examine the records maintained by the Nazirs of all the Claims
Tribunals. The Claims Tribunals shall direct their Nazirs to produce the records maintained by them before the
Registrar (Vigilance), who shall submit a report to this Court as to whether the records are being properly
maintained. The Registrar (Vigilance) may also suggest measures for due implementation of the aforesaid
provisions of law and the directions of this Court.

18. All the Insurance companies are directed to file the affidavit of compliance of Order XXI Rule 1 of the Code
of Civil Procedure as well as the directions dated 9th July, 1997 passed by this Court. The affidavit shall initially
contain the data for the last one year. The affidavit shall contain the following particulars in tabular form:-
(i) Case title and number.
(ii) Date of award.
(iii) Award amount.
(iv) Date of deposit of the award amount.
(v) Date of notice of deposit under Order XXI Rule 1(2) of the Code of Civil Procedure.
(vi) Date of clearance of the cheque of the award amount by the Bank.
(vii) Amount of interest payable under Order XXI Rule 1(4) of the Code of Civil Procedure (If no notice
was given, the interest be calculated from the date of cheque up to the date of clearance of the cheque).
(viii) Amount of interest actually paid.

19. The affidavit shall also state whether the bank account number and the name of the Bank has been
furnished in all pending cases to the Claims Tribunals in terms of directions of this Court. The affidavit be filed by
all the Insurance companies within two weeks. The responsible officer of all the Insurance companies shall remain
present in the Court on the next date of hearing along with all the relevant records.”

 On 23rd February, 2010, the High Court passed the following interim direction:-

(i) Before or at the time of passing of the award, the Claims Tribunals shall examine the claimants to ascertain their
financial condition and needs and shall pass an order with regard to their share, mode of disbursement, amount to be kept
in fixed deposit and period of fixed deposit according to the financial condition of the claimants. (It has been noticed that,
in many cases, the Tribunals have been passing the standard orders of disbursement and fixed deposits without
examining the financial condition and needs of the claimants and the poor victims are left at the mercy of either accepting
the order or again engaging the counsel to approach the Court for modification).

(ii) At the time of examining the Claimants, the Claims Tribunals shall also ascertain the complete address of the
claimants as well as their counsel. In the award, the Claims Tribunals shall specifically direct the Insurance company
and/or the owner/driver, as the case may be, to deposit the award amount with the Tribunal and/or the Bank along with
the interest upto the date of notice of deposit to the claimants with a copy to their counsel. The names and addresses of
the claimants and their counsel for issuance of notice of deposit be mentioned in the award.

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(iii) If the award amount has been directed to be deposited by the Insurance Company with the bank, copy of the award
be sent to the Nodal Officer of the Bank along with the Court stamped copy of the photographs and signatures of the
claimants. The photographs and signatures of the claimants be taken at the time of examining them before or at the
time of passing the award. Two sets of photographs and signatures should be taken, out of which one set should be sent
to the Nodal Officer of the Bank along with the copy of the award and the second set should be retained in the Court
record for future reference and/or any irregularity being pointed out. (The forwarding of the Court stamped photographs
and the signatures of the claimants would ensure that no attempt is made to defraud the system). If possible, the proof
of residence and the details of the Bank Account should also be collected from the claimant at the time of examining
them and one stamped set of the same should also be forwarded to the Bank and the second set be retained in the Court
record.

(iv) The Claims Tribunal shall fix a date for reporting compliance in the award itself. The Claims Tribunals shall also
direct the Insurance Company and/or driver or owner to place on record the proof of deposit of the award amount, the
notice of deposit and the calculation of interest on the date fixed. Upon such proof being filed, the Claims Tribunal shall
ensure that the interest upto date of notice of deposit has been deposited by all concerned.

(v) If the award amount is not deposited within the time provided in the award, the Claims Tribunals shall proceed to
recover/execute the award in terms of the directions of this Court in the case of New India Assurance Company Ltd. Vs.
Kashmiri Lal, 2007 ACJ 688.

(vi) The record of all the awards passed by the Claims Tribunals shall be maintained by the Nazirs in chronological order
according to the date of the award in such a manner that it is easy for the Nazir as well as the enquiring litigants/lawyers
to ascertain whether the payment of their award has been received or not. The following can be considered as a format:-

(a) Date of award

(b) Case number
(c) Title of the case
(d) Award amount
(e) Date of deposit of the award amount
(f) Date of notice of deposit by the depositor.
(g) Date of notice of deposit by the Tribunal.
(h) Amount of interest upto date of notice of deposit.
(i) Whether award amount and complete interest deposited.
(j) Balance outstanding interest.
(k) Remarks (Action taken to recover the balance interest)

(vii) In all pending execution cases, the Claims Tribunals shall follow the directions of this Court in New India Assurance

12
 Company Ltd. Vs. Kashmiri Lal (supra). The Claims Tribunals shall direct all the Insurance Companies to provide the name
of Banker and their Account number within ten days.

(viii) In respect of pending cheques, the Claims Tribunal shall forthwith issue the notice of deposit to the claimants as well
as their counsels.

(ix) In respect of the expired cheques, the Claims Tribunal shall also forthwith issue notice to the Insurance Companies
with direction to deposit fresh cheques within 30 days.”

VIII Delhi Motor Accident Claims Tribunal Rules, 2008

 In the case of FAO 492/1999, it came to the notice of Delhi High Court that Delhi Motor Accident Claims Tribunal Rules were Delhi Motor Accident Claims Tribunal
drafted in March, 1999 and the Draft Rules were published on 16 th August, 2001 inviting objections from the public but despite Rules, 2008 have very benevolent
a lapse of more than eight years, the Rules have not yet been notified. Notice was, therefore, issued to Government of NCT of provisions. Some of the important
Delhi on 19th May, 2009 in response to which it was informed to the High Court that the Draft Rules were again published in provisions are that an uninsured
Delhi Gazette on 3rd September, 2008 and the same are pending for approval before the Cabinet of Government of NCT of vehicle cannot be released on
Delhi. superdari by any Court unless the
owner of the offending vehicle gives
 Vide order dated 22nd June, 2009, Government of NCT of Delhi was advised to expedite the consideration of the said Rules and sufficient security to satisfy the award
some suggestions were given by the High Court to be incorporated in the Draft Rules. that may be passed by the claims
Tribunals. On the expiry of three
 On 13th July, 2009, Government of NCT of Delhi notified Delhi Motor Accidents Claims Tribunal Rules, 2008. months of the seizure, the Magistrate
shall auction the offending vehicle and
 Vide order dated 5th November, 2009, the High Court has given suggestion to the Expert Committee appointed by the Ministry send the amount received in auction
of Road Transport and Highways to consider inclusion of provisions of Delhi Motor Accidents Claims Tribunal Rules, 2008 in to the Claims Tribunal to be adjusted
the Central Rules. in the award amount. The Rules also
define the duties of the Police Officers,
Registering Authority. Under the new
Rules awards of the Claims Tribunals
can be adjudicated like a decree of the
Civil Court and the Claims Tribunals
are vested with all the powers of the
civil Courts. The reports submitted by
the Investigating Officer, Registering
Authority and the confirmation by the
Insurance companies are presumed to
be correct and shall be read in
evidence without formal proof till

13
 proved to the contrary.

IX Scope of Section 168 and 169 of the Motor Vehicles Act, 1988.
The inquiry into the claim by the
Section 168 of the Motor Vehicles Act provides that the Tribunal shall hold an inquiry into the claim. Section 169 provides Claims Tribunals shall expedite the
that the Claims Tribunals shall follow such summary procedure as it thinks fit. However, it has been noticed that the hearing and disposal of the claim
Tribunals have not been conducting any inquiry but were conducting a normal civil trial due to which the disposal of the claim petition
petition was getting unduly delayed. Vide order dated 22 nd May, 2009 in the case of FAO No.884/2003, the directions have
been issued by Delhi High Court to the Tribunals to conduct an inquiry into the claim petition instead of a protected civil trial.

X Enforcement of Section 196 of the Motor Vehicles Act, 1988

Section 196 of the Motor Vehicles Act provides for imprisonment upto three months or fine upto Rs.5,000/- or both for the Strict enforcement of Section 196 of
driver and owner of the uninsured vehicles. Delhi Police has not been prosecuting the offenders of uninsured vehicles under the Motor Vehicles Act, 1988 shall
Section 196 of the Motor Vehicles Act. Show Cause Notice was issued to the Commissioner of Police on 19th August, 2009 in inculcate the discipline in citizens to
pursuance to which the Delhi Police has regretted the lapse in not implementing Section 196 of the Motor Vehicles Act and insure the vehicles. Insurance of the
has issued a Standing Order No.157/2009 for adding Section 196 of the Motor Vehicles Act in all pending investigations and vehicles is in the interest of the
to file supplementary challans in the cases pending trial in respect of uninsured vehicles. By invoking Section 196 of the victims as well as the owners of the
Motor Vehicles Act, the owners of many uninsured vehicles have paid the claim amount to the claimants. vehicles.

XI. Prosecution of offenders holding fake driving licence as well as persons involved in fabricating/forging fake driving
licence.

There are large number cases relating to fake driving licences and no action is taken against the fake driving licence holders The prosecution of fake licence
as well as persons who fabricate/forge fake driving licences. Forging and holding a fake driving is a serious offence and the holders will make Delhi roads safe.
person holding a fake driving licence is a danger to the society inasmuch as he is not legally entitled to drive the motor
vehicle and may not be knowing driving at all or his driving licence may have been suspended for involvement in some
accident. The persons holding fake driving licence are liable to be prosecuted under law but they drive freely on road. The
fake driving licence holders should not be permitted to drive on the road.

Vide judgment dated 3rd December, 2009 in MAC.APP.236/2009, Delhi High Court constituted a Committee to draw up a
mechanism for prosecution of fake driving licence holders/forgers under Sections 465, 468, 471 and 474 of the Indian Penal
Code and to make Delhi roads safe by ensuring that the fake driving licence holders do not drive freely on Delhi roads any
more.

The Committee constituted by Delhi High Court held its meeting on 14th December, 2009 and submitted its report before

14
the High Court on 23rd December, 2009.
Based upon the report of the Committee, the High Court passed the following directions on 23rd December, 2009:-
(i) All complaints relating to fake driving licence by the Insurance Company and/or owner of a vehicle be made in
writing to DCP/Crime, Police Headquarter, I.P. Estate, New Delhi. DCP/Crime has nominated Mr. Mohan Singh Dabas,
ACP/Anti-Auto Theft Squad, Crime Branch, Phone No.011-26925457 as nodal officer to monitor the fake driving
licence cases.

(ii) All the Insurance Companies shall make a complaint whenever they get information of fake driving licence. The
Insurance Companies shall also compile the data of fake driving licences in respect of accidents which have
occurred in the last three years, i.e., after 1st January, 2007 in Delhi and shall make a complaint to the DCP, Crime
Branch, Delhi Police in the format given in para -11 (ii) of the order dated 3rd December, 2009. The complaint shall
be accompanied by the copy of the fake driving licence. The complaint shall be transmitted electronically to Delhi
Police at the E-mail ID [email protected]. along with the scanned copy of the licence said to be fake. The complaint
shall also be made in writing duly signed by the authorized officer of the Insurance Company.

(iii) The Delhi Police shall take the following action in respect of the aforesaid complaints:-

(a) If the case is pending investigation, then to ensure further investigation into the issue of fake driving licence in the
concerned Police Station.

(b) In pending trial cases, to ensure filing of supplementary charge-sheet on this aspect.

(c) The cases in which the trial has already been completed, to ensure registration of fresh FIR by the concerned police
station.

(iv) ACP/Anti Auto theft shall maintain record of all such complaints and action taken by police.

(v) Delhi Police shall create a database of information regarding fake licences and licence holders received from Insur-
ance Companies or other sources.
(vi) Whenever the police registers an FIR against a person for driving with a fake licence, particulars of that FIR be en -
tered in the entry against the information received.

(vii) The office of DCP/Crime shall prepare and maintain a tabulator chart (database) of the information received and look
for any ‘patterns’ within it. It shall take such action according to law against those concerned as it considers proper.

(viii) The police shall place the information of those cases where the Driving Licence produced was found to be fake on a
website so that the Transport Authorities in other States can access it and be armed with this information before is-
suing a Driving Licence for such a person in that State.

15
 Delhi Police shall launch a special drive to book the persons who fake the driving licences.
All the Insurance Companies have been directed to put the aforesaid directions to immediate compliance insofar as fresh
cases of driving licences are concerned. All the Insurance Companies have also been directed to compile the data relating to
the fake driving licences in respect of the accidents during the last three years and to make the complaint to Delhi Police
within a period of four weeks.

XII. Judgment on the Doctrine of Sovereign Immunity

Air Force Truck killed a person in a motor accident on 22nd May, 2009. The Tribunal awarded a sum of Rs.4,74,488/- against It is hoped that the Government will
which the Air Force filed the appeal before the High Court raising the plea of sovereign immunity. issue a circular to withdraw the plea of
sovereign immunity in all cases
The law with respect to sovereign immunity is well-settled by the Hon’ble Supreme Court in various judgments. The rule of relating to motor accident claims and
immunity in favour of Crown based on common law in the United Kingdom has disappeared from the land of its birth and it the litigation in this regard shall come
has no validity in our country after the Constitution. The Hon’ble Supreme Court has further held that Article 300 of the to an end.
Constitution has saved the right of Parliament to enact such law but no law has been enacted till now. The Maxim that King
can do no wrong or that the Crown is not answerable in tort has no place in Indian jurisprudence where the power vests, not
in the Crown, but in the Government, which has to act in accordance with the provisions of the Constitution and would be
answerable to the people for any violation thereof. The Hon'ble Supreme Court in the case of Pushpa Thakur v. Union,
1984 ACJ 559, has held that the doctrine of sovereign immunity has no application so far as claims for compensation under
the Motor Vehicles Act are concerned.

If the Executive does not follow the certain well settled law laid down by the Hon’ble Supreme Court, it shall create confusion
in the administration of justice and undermine the law laid down by the Apex Court and shall impair the constitutional
authority of the Apex Court. The disobedience of the law laid down by the Court shall also amount to contempt of Court.

Vide order dated 12th November, 2009 in MAC.APP.284/2008, Delhi High Court has directed the learned Attorney General to
personally look into the matter and consider the implication of Government raising the plea of sovereign immunity in claims
under the Motor Vehicles Act, 1988 despite clear and well settled law by the Hon’ble Supreme Court. The learned Attorney
General shall ascertain the number of pending motor accident claim cases in various Courts/Tribunals where the plea of
sovereign immunity has been raised and shall also consider the possibility of issuance of a circular/Government of India
directive in respect of all pending motor accident claim cases as well as cases that may arise in future.

XIII Liability of the Insurance Company in respect of a pillion rider on a two-wheeler and occupants in a private car
under comprehensive/package policy.

A comprehensive/package insurance policy covers the occupants in a private car and a pillion rider on a two-wheeler and It is also hoped that large number of

16
 there is a specific clause in the insurance policies in this regard. Tariff Advisory Committee (TAC) and Insurance Regulatory pending cases all over the country
and Development Authority (IRDA) are the statutory authorities to regulate the tariff and terms and conditions of the shall come to an end, and the
insurance policies and there are directions of both these authorities to cover the occupants in a private car and a pillion rider claimants who have been denied
on a two-wheeler under comprehensive/package policy. compensation on this ground, shall
ultimately get the compensation
Despite the clause in the policy and the directions of the TAC and IRDA, the insurance companies do not accept their liability legitimately due to them.
and litigation in this regard is pending in various Courts all over the country.
In MAC.APP.176/2009, Delhi High Court examined the officers of United India Insurance Co. Ltd. as well as TAC and IRDA
under Section 165 of the Indian Evidence Act. All the officers admitted the liability of the Insurance Companies in such
matters. The Court also issued notice to all other insurance companies. On 16.11.2009, IRDA issued fresh circular reiterating
the factual position. IRDA thereafter convened a meeting dated 26 th November, 2009 of all the 17 Insurance Companies who
after deliberations, admitted their liability in respect of occupants in a private car and a pillion rider on a two-wheeler under
the comprehensive/package policy. All the Insurance Companies agreed to comply with the Circular dated 16 th November,
2009 issued by IRDA restating the position relating to the liability of the insurance companies. All the Insurance Companies
further agreed to withdraw the contrary plea wherever taken before the Motor Accident Claims Tribunals and to issue
instructions to their respective lawyers and the operating officers within seven days. The insurance companies further
agreed to withdraw all appeals filed by them before various High Courts raising this plea and also to concede the liability in
respect of appeals filed by the claimants before the High Court on the above aspect. The number of appeals pending before
the High Courts have been agreed to be identified by the Insurance Companies within two weeks and the withdrawal to be
done within four weeks thereafter.

The High Court held that where the vehicle is covered under a comprehensive/package policy, there is no need for a Motor
Accident Claims Tribunal to go into the question whether the insurance company is liable to compensate for the death or
injury of a pillion rider on a two-wheeler or the occupants in a private car. In view of the Tariff Advisory Committee’s
directives and those of the Insurance Regulatory Development Authority, such a plea was not permissible and ought not to
have been raised as, for instance, it was done in the case before it. All the Motor Accident Claims Tribunals functioning in
Delhi have been directed to take note and ensure that no such plea is allowed to be put forward by any insurance company.

XIV Right of legal representatives to claim compensation after the death of the injured
The accident dated 27th May, 2002 resulted in grievous injuries to the claimant, who filed the claim petition before the The Expert Committee appointed by
Tribunal. The claimant died during the pendency of the petition whereupon his legal representatives were substituted and an the Ministry of Road Transport and
award was passed. The Insurance company challenged the award on the ground that the claim petition abated on death of Highways is considering the
the claimant and the right to sue did not survive in favour of the legal representatives. suggestions of the High Court.

The Law Commission in its 178th Report has recommended the amendment to Section 306 of the Indian Succession Act,
1925 as well as Section 166 of the Motor Vehicles Act, 1988 to provide for initiation/continuation of proceedings by the legal
representatives of the injured person upon his death. The Law Commission has referred to Full Bench judgment of Karnataka
High Court in the case of Kannamma Vs. Dy. General Manager, ILR 1990 Karn. 4300 (FB) in which the Full Bench

17
 recommended that the provisions of Section 306 of the Indian Succession Act, 1925 and of Section 110A of the Motor
Vehicles Act, 1939 be amended so as to permit the survival of the right of the injured person to seek compensation to his
legal representatives, irrespective of whether the cause of death was relatable to the accident or not. In the subsequent,
Single Bench judgment of Karnataka High Court in the case of Baburao Sataba Manabutaker vs. Doreswamy (MFA 4072/1998
dated 4.9.2001) lamented delay in amending the law and pointed out that the delay in amendment is causing grave injustice.

The Government is still to act on the recommendation of 178th Report of Law Commission and the position continues as it is
which is causing grave injustice to the victims of the road accident.

Since the Government has now appointed a Committee to review the entire Motor Vehicles Act, vide order dated 4th
November, 2009 in MAC APP.432/2009, the copy of this order has been directed to be sent to the Secretary, Ministry of Road
Transport and Highways and to Mr. S. Sunder, Chairman of the Expert Committee appointed by Ministry of Road Transport
and Highways to consider the recommendations of the Law Commission.

XV Insurance Companies cannot deduct TDS under Section 194-A of the Income Tax Act from the interest on the award
amount deposited under an interim order of the Court.

It came to the notice of Delhi High Court that the Insurance Companies had been deducting TDS from the interest on award The sufferings of victims of road
amount directed to be deposited by an interim order pending final determination of the appeals. After deduction, the TDS accidents due to illegal deduction of
certificate is issued in the name of the Registrar General of the Court. The claimants cannot get the refund/adjustment of the TDS by Insurance Companies has
TDS deducted and they suffer loss of TDS amount to that extent. come to an end.

Vide judgment dated 26th March, 2009 in MAC.APP.596/2008, Delhi High Court held that the deposit of award amount
including interest with the Court under interim direction of the Court pending final determination of the appeal is only an
inchoate right and, therefore, Section 194-A of the Income Tax Act does not apply and no TDS can be deducted.

XVI Scope of Section 165 of the Indian Evidence Act.

 Section 165 of the Indian Evidence Act empowers the Judge to ask any question, in any form, at any time, of any witness or
The judgment shall help in expeditious
of parties, about any fact, relevant or irrelevant and may order production of any document or thing. The object of Section
disposal of the cases. By examining
165 of the Indian Evidence Act is that the Judge is not merely to listen to the evidence put before him but to inquire to the
the parties and the witnesses, the
utmost into the truth of the matter and question witnesses on points which the lawyers for the parties have either overlooked
Judge can reach the truth and cut
or left obscure or willfully avoided.
short the delay.
 Vide order dated 22nd May, 2009 in the case of Somari Devi Vs. Ragwar Singh, FAO No.884/2003, the Delhi High Court has
laid down the scope of Section 165 of the Indian Evidence Act.

18
XVII
Scope of Section 167 of the Indian Evidence Act, 1872.
Improper admission or rejection of evidence is not by itself a ground for reversal of a decision, if there is other evidence to The Appellate Court can effectively
support it. Where admissible evidence has been improperly rejected or inadmissible evidence has been admitted by the decide the appeal following Section
Judge, such improper reception or rejection of evidence shall not of itself be a ground for new trial or reversal of any decision 167 of the Indian Evidence Act.
in any case, unless substantial wrong or miscarriage of justice has been thereby occasioned; or, in other words, if the Court
considers that after leaving aside the evidence that has been improperly admitted, there was enough evidence on the record
to justify the decision of the lower court, or that if the rejected evidence were admitted the decision ought not have been
affected thereby, no Court of appeal should set it aside.

Scope of Section 167 of the Indian Evidence Act has been laid down in judgment dated 21st May, 2009 in
MAC.APP.NO.158/2007.

XVIII Steps to curb delay and repeated adjournments for service of Respondents

 In the appeals filed by the Insurance Companies, the stay is granted subject to deposit the entire award amount along with The aforesaid order shall serve the
interest within 30 days and notice is issued to the claimants and date is fixed after about 45 days so that the appropriate following purpose:-
order for disbursement of the award can be passed on the next date. However, invariably the appellants fail to file the (i) The date of service shall not be
process fee and, therefore, the case gets adjourned. At times, there are repeated failures on the part of the Insurance wasted because of the default of
Companies to file the process fee as a result of which the claimants do not become aware of the deposit made in the High the appellant to take steps for
Court and grave injustice is caused to them. service.
(ii) The Judicial time wasted to
 Delhi High Court has passed an order in MAC.APP. No.405/2009 to the effect that if the appellant fails to take steps for service attend the default hearings shall
of the respondents within one week or the process fee is filed but returned under objections and objections are not removed be saved.
within three days, the Registry shall issue court notice to the respondents by ordinary process as well as registered AD and in (iii) There are some cases where the
that event, Rs.5,000/- shall be deposited as cost by the appellant before the next date and upon failure to deposit the cost appellant deliberately does not
before the next date, same shall be deducted out of the statutory amount of Rs.25,000/- deposited by the appellant with the take steps to delay the
appeal under Section 173 of the Motor Vehicles Act. proceedings. The appellant
cannot now succeed in delaying
the case.
(iv) Injustice to the claimants due to
failure of the appellant to take
steps and delay of the appeal

19
 would be avoided.
(v) The pre-emptory order of
imposing cost would act as a
deterrent to the counsels and
the discipline would improve
(vi) The funds collected by way of
cost for default can be put to a
benevolent use.

XIX Settlement of pending death cases according to the Schedule accepted by the insurance companies

On 29th May, 2009, all the four nationalized insurance companies, namely, New India Assurance Company Limited, Oriental The huge arrears of pending death
Insurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited agreed to settle cases can be settled by the said
all the pending death cases in Delhi according to the principles laid down by the Hon’ble Supreme Court in Sarla Verma Vs. scheme.
Delhi Transport Corporation, 2009 (6) Scale 129 decided on 15th April, 2009 with a slight reduction of multiplier by 2. The
nationalized Insurance companies have also agreed to pay interest at the rate of 5% per annum.

The schedule agreed to by all the nationalized companies for settlement of pending death cases is as under:-

1. Multiplier
Age of the deceased Multiplier
(in years)
15 – 25 16
26 – 30 15
31 – 35 14
36 – 40 13
41 – 45 12
46 – 50 11
51 – 55 9
56 – 60 7
61 – 65 5
Above 65 3
2. Deduction for Personal and Living Expenses

 Deceased – unmarried

(i) Deduction towards personal : 1/2 (50%)

expenses.

20
 (ii) Deduction where the family of the : 1/3rd (33.33%)
bachelor is large and dependent on
the income of the deceased.
 Deceased – married

(i) 2 to 3 dependent : 1/3rd deduction towards

family members. personal expenses.

(ii) 4 to 6 dependent : 1/4th deduction towards

family members. personal expenses.

(iii) More than 6 family : 1/5th deduction towards

members personal expenses.

3. Future Prospects

(i) Below 40 years of age : Actual salary +

50% towards future prospects.

(ii) Between 40-50 years : Actual salary +

30% towards future prospects.

(iii) More than 50 years job : Actual salary only.

No addition for future prospects.

(iv) Wages not sufficiently : Minimum wages +

proved 50% towards inflation and price index.

4. Non-Pecuniary Damages
(i) Compensation for loss of : Rs.5,000/- to Rs.10,000/-
estate
(ii) Compensation for loss of : Rs.5,000/- to Rs.10,000/-
consortium
(iii) Compensation for loss of : Rs.5,000/- to Rs.10,000/-
love and affection
(iv) Funeral expenses, cost of : Actual

21
 transportation of body
and medical expenses

5. Rate of Interest
Rate of Interest : 5.0%

XX Proposed action plan for expeditious disposal of motor accident cases:-

The following plan for disposal of motor accident claim cases prepared by Justice J.R. Midha for expeditious disposal of motor
The following action plan shall clear
accident cases was circulated by the Ministry of Law & Justice in the Conference on “The National Consultation for Strengthening
the huge arrears of pending motor
the Judiciary towards reducing the Pendency and Delays” on 24th October, 2009:-
accident claim cases all over the
“I. FRESH ACCIDENT CASES country.
 The Police is the first agency to take cognizance of a motor accident and it has the entire evidence required for
initiating the proceedings for compensation.
 The Police shall file an Accident Information Report under Section 158(6) of the Motor Vehicles Act before the Claims
Tribunal along with all the relevant documents required by the insurance company to settle the claim.
 The Police shall also produce the owner, driver, eye-witness and claimants before the Claims Tribunal.
 The Police shall simultaneously serve the copy of the Accident Information Report on the Insurance Company.
 The Tribunal shall treat the Accident Information Report of the Police as a claim petition under Section 166(4) of the
Motor Vehicles Act.
 The Tribunal shall conduct an inquiry under Section 168 of the Motor Vehicles Act and shall pass an award after
recording the statement of the claimants, driver, owner and eye-witness.
 Delhi Police has started the above system after the notice of contempt issued by the Delhi High Court for failure to
comply with Section 158(6) of the Motor Vehicles Act for the last 15 years.
 This system shall save the time lost in service of the owner, driver and eye-witness and the collection of relevant
documents for passing the award.
 By this system, a claim petition can be decided in 2-3 months time with 2-3 hearings against normal 50-100 hearings
spread over 5-10 years.

II. DISPOSAL OF ARREARS OF PENDING MACT CASES

 Large number of cases are pending for service of driver, owner and eye-witness of the offending vehicle. The Police
be directed to produce them before the Claims Tribunal.
 As per the Procedural Manual of Nationalized Insurance Companies for Motor Claims, the Insurance Company has to
appoint an investigator immediately upon the receipt of the intimation of claim and upon receipt of the report of the
Investigator, the Company has to compute the compensation in accordance with law and has to offer the same to the
claimant. However, in actual practice, the Insurance company appoints an investigator, compute the compensation
and make a provision of liability in their accounts but do not offer the compensation to the claimant and vehemently

22
 contest the claim petition before the Tribunal. The Insurance Companies be directed to appoint an officer in each
case who shall be responsible for processing and settlement of each case according to their Procedural Manual. The
admitted amount along with the computation and the investigator’s report be filed by the Insurance company in all
pending cases.
 Where the service is complete, the death cases can be disposed of according to the attached Schedule agreed to by
the Insurance Companies (The Schedule is based on the law settled by the Hon’ble Supreme Court with a slight
reduction of multiplier by two and interest at the rate of 5%).
III. NEED FOR NEW LAW
 More than one lakh people die in road accident a year, meaning thereby that one person die every ten minutes. A
large number of cases are hit and run where the particulars of the offending vehicles are not traceable. A large
number of vehicles are uninsured and the victims do not get any compensation in those cases. Even in the case of
insured vehicles, the insurance companies do not have any attitude to process and settle the claim and they wait
for the award of the Tribunal. Most of the victims of the road accident are sole bread winners from the poorest
strata of the society and their family starve after the death of the victim. The Insurance companies vehemently
fight the cases. The version of the Insurance companies is that the claim-premium ratio is 400% i.e. they are
paying Rs.400 towards claim against Rs.100 as premium in motor insurance.
 The road users have a fundamental right to life and liberty which shall include the duty of the State to ensure
safety on roads and to ensure due process of law for expeditious payment of compensation in the event of injury or
death of the road user arising out of permitting the use of motor vehicles on the roads.
 South African Model is best suited for our country which provides that all vehicles on road are insured for third
party risk and the owners of the vehicles are not required to take the insurance policy for third party liability. A
surcharge is added to the cost of petrol/diesel and the amount so collected is sent to Road Accident Fund which is
managed by Road Accident Fund Commission.
 The Road Accident Fund Commission manages and disburses the Road Accident Fund. The Commission also
enquires into and makes recommendations regarding the system for computation and disbursement of
compensation to the victims of road accident. The Commission also examines the factors responsible for the
accidents such as excessive speed, influence of alcohol, vehicle fitness, overloading, poor brakes and road
environmental conditions including poor maintenance of road surface and inadequate signs and markings. The
Commission also makes contribution of Fuel Levy Fund for campaign/programmes to promote road safety.
 The South African model system shall also save the cost of manpower used by Insurance companies to issue
policies. The report of Road Accident Fund Commission in South Africa is available on the website,
http://www.transport.gov.za/library/docs/raf/index.htm.
 Delhi High Court has passed an order dated 25th September, 2009 advising the Government to examine the South
African Law.”

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