Motor Accident Claims : Supreme Court Issues Directions For Timely Registration Of First Accident Report By Police, Directs Forming Of Special Police Units

"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 deal with the motor accident claim cases", a Bench of Justices S Abdul Nazeer and JK Maheshwari said.

This apart, here are the key guidelines issued by the Bench to the police and insurance companies on how to deal with cases concerning motor accidents.

On receiving the intimation regarding road accidents by a motor vehicle at a public place, the concerned Station House Officer should take steps as per Section 159 of the MV Amendment Act.

After registering the FIR, the Investigating Officer, as per Motor Vehicles Amendment Rules, 2022 should submit the First Accident Report within 48 hours to the Claims Tribunal. The Interim Accident Report and Detailed Accident Report also should be filed before the Claims Tribunal within the prescribed time limit.

The registering officer should verify the registration of the vehicle, driving license, fitness of the vehicle, permit, and other ancillary issues and submit the report in coordination with the police officer before the Claims Tribunal.

The flow chart and all other documents, as specified in the Rules, shall either be in the vernacular language or English language. The Investigating Officer shall inform the victim(s)/legal representative(s), driver(s), owner(s), insurance companies, and other stakeholders concerning the action and should take steps to produce the witnesses before the Tribunal.

Distribution memos attaching the police stations to the Claim Tribunals shall be issued by the Registrar General of the High Courts from time to time, if not already issued.

The Claim Tribunals are directed to check the offer of the Designated Officer of the insurance company with an intent to award just and reasonable compensation. After recording such satisfaction, the settlement should be recorded under Section 149(2) of the MV Amendment Act, subject to consent by the claimant(s).

If the claimant(s) is not ready to accept the same, a date should be fixed for the hearing and allowing producing the documents and other evidence seeking enhancement.

The Court directed the General Insurance Council and all insurance companies to issue appropriate directions to follow the mandate of Section 149 of the MV Amendment Act and the Rules. The appointment of the Nodal Officer prescribed in Rule 24 and the Designated Officer prescribed in Rule 23 should be immediately notified.

If the claimant(s) takes recourse under Section 164 or 166 of the MV Amendment Act, they are directed to join the Nodal Officer/Designated Officer of the insurance company as respondents in the claim petition as a proper party of the place of an accident where the FIR has been registered by the police station.

The Court urged the Registrar General of the High Courts, States Legal Services Authority, and State Judicial Academies to sensitize all stakeholders as early as possible concerning the provisions of Chapters XI and XII of the MV Amendment Act and the MV 65 Amendment Rules, 2022 and to ensure the mandate of law.

On disputing the liability by the insurance company, the Claims Tribunal shall record the evidence through the Local Commissioner. The fees and expenses of such a Local Commissioner will be borne by the insurance company.

The State Authorities should take appropriate steps to develop a joint web portal/platform to coordinate and facilitate the stakeholders to carry out the provisions of the MV Amendment Act and the Rules in coordination with any technical agency.

The guidelines issued by the Court :

i) On receiving the intimation regarding road accident by use of a motor vehicle at public place, the SHO concerned shall take steps as per Section 159 of the M.V. Amendment Act.

ii) After registering the FIR, Investigating Officer shall take recourse as specified in the M.V. Amendment Rules, 2022 and submit the FAR within 48 hours to the Claims Tribunal. The IAR and DAR shall be filed before the Claims Tribunal within the time limit subject to compliance of the provisions of the Rules.

iii) The registering officer is duty bound to verify the registration of the vehicle, driving licence, fitness of vehicle, permit and other ancillary issues and submit the report in coordination to the police officer before the Claims Tribunal.

iv) The flow chart and all other documents, as specified in the Rules, shall either be in vernacular language or in English language, as the case may be and shall be supplied as per Rules. The Investigating Officer shall inform the victim(s)/legal representative(s), driver(s), owner(s), insurance companies and other stakeholders with respect to the action taken following the M.V. Amendment Rules and shall take steps to produce the witnesses on the date, so fixed by the Tribunal.

v) For the purpose to carry out the direction No. (iii), distribution of police stations attaching them with the Claim Tribunals is required. Therefore, distribution memo attaching the police stations to the Claim Tribunals shall be issued by the Registrar General of the High Courts from time to time, if not already issued to ensure the compliance of the Rules.

vi) In view of the M.V. Amendment Act and Rules, as discussed hereinabove, the role of the Investigating Officer is very important. He is required to comply with the provisions of the Rules within the time limit, as prescribed therein. Therefore, for effective implementation of the M.V. Amendment Act and the Rules framed thereunder, the specified trained police personnel are required to be deputed to deal with the motor accident claim cases. Therefore, we direct that the Chief Secretary/Director General of Police in each and every State/Union Territory shall develop a specialized unit in every police station or at town level and post the trained police personnel to ensure the compliance of the provisions of the M.V. Amendment Act and the Rules, within a period of three months from the date of this order.

vii) On receiving FAR from the police station, the Claims Tribunal shall register such FAR as Miscellaneous Application. On filing the IAR and DAR by the Investigating Officer in connection with the said FAR, it shall be attached with the same Miscellaneous Application. The Claims Tribunal shall pass appropriate orders in the said application to carry out the purpose of Section 149 of the M.V. Amendment Act and the Rules, as discussed above.

viii) The Claim Tribunals are directed to satisfy themselves with the offer of the Designated Officer of the insurance company with an intent to award just and reasonable compensation. After recording such satisfaction, the settlement be recorded under Section 149(2) of the M.V. Amendment Act, subject to consent by the claimant(s). If the claimant(s) is not ready to accept the same, the date be fixed for hearing and affording an opportunity to produce the documents and other evidence seeking enhancement, the petition be decided. In the said event, the said enquiry shall be limited only to the extent of the enhancement of compensation, shifting onus on the claimant(s).

ix) The General Insurance Council and all insurance companies are directed to issue appropriate directions to follow the mandate of Section 149 of the M.V. Amendment Act and the amended Rules. The appointment of the Nodal Officer prescribed in Rule 24 and the Designated Officer prescribed in Rule 23 shall be immediately notified and modified orders be also notified time to time to all the police stations/stakeholders.

x) If the claimant(s) files an application under Section 164 or 166 of the M.V. Amendment Act, on receiving the information, the Miscellaneous Application registered under Section 149 shall be sent to the Claims Tribunal where the application under Section 164 or 166 is pending immediately by the Claims Tribunal.

xi) In case the claimant(s) or legal representative(s) of the deceased have filed separate claim petition(s) in the territorial jurisdiction of different High Courts, in the said situation, the first claim petition filed by the claimant(s)/legal representative(s) shall be maintained by the said Claims Tribunal and the subsequent claim petition(s) shall stand transferred to the Claims Tribunal where the first claim petition was filed and pending. It is made clear here that the claimant(s) are not required to apply before this Court seeking transfer of other claim petition(s) though filed in the territorial jurisdiction of different High Courts. The Registrar Generals of the High Courts shall take appropriate steps and pass appropriate order in this regard in furtherance to the directions of this Court.

xii) If the claimant(s) takes recourse under Section 164 or 166 of the M.V. Amendment Act, as the case may be, he/they are directed to join Nodal Officer/Designated Officer of the insurance company as respondents in the claim petition as proper party of the place of accident where the FIR has been registered by the police station. Those officers may facilitate the Claims Tribunal specifying the recourse as taken under Section 149 of the M.V. Amendment Act.

xiii) Registrar General of the High Courts, States Legal Services Authority and State Judicial Academies are requested to sensitize all stakeholders as early as possible with respect to the provisions of Chapters XI and XII of the M.V. Amendment Act and the M.V. Amendment Rules, 2022 and to ensure the mandate of law.

xiv) For compliance of mandate of Rule 30 of the M.V. Amendment Rules, 2022, it is directed that on disputing the liability by the insurance company, the Claims Tribunal shall record the evidence through Local Commissioner and the fee and expenses of such Local Commissioner shall be borne by the insurance company.

xv) The State Authorities shall take appropriate steps to develop a joint web portal/platform to coordinate and facilitate the stakeholders for the purpose to carry out the provisions of M.V. Amendment Act and the Rules in coordination with any technical agency and be notified to public at large.

The Bench was hearing a plea assailing the final order passed by the Allahabad High Court dated September 9, 2018.

In 2018, the MACT allowed the claim petition by a deceased accident and awarded a compensation of Rs. 31,90,000/­ 2 along with 7% interest. While computing the loss of dependency, the annual income of the deceased was accepted as Rs. 3,09,660/­.

It was held that the vehicle was not being operated as per the terms of the permit and was in violation of the terms and conditions of the insurance policy, therefore, the owner of the offending vehicle was held liable to pay compensation.

The appellant appealed before the High Court assailing the issue of liability contending that there was no violation of guidelines and submitted that the offending vehicle was insured with the insurance company indemnifying the liability. The appellant further contended that he had Special Temporary Authorization to operate the bus on the route for which the fee was paid. The High Court, however, affirmed the findings of MACT and held that the vehicle owner failed to produce the original permit and also could not get the same proof to call the person from the Transport Department. Aggrieved, the party moved to the Supreme Court.

The Supreme Court firstly noted that in Rajesh Tyagi's case, the Delhi High Court had formulated the “Claims Tribunal Agreed Procedure” for time-bound settlement of motor accident claims within 90 to 120 days and directed its implementation only for trial as a pilot project for six months in 2010.

"The High Court also directed the Delhi Police to prepare “Accident Investigation Manual” for implementation of the CTAP. In the output, it revolutionized the Motor Accident Compensation Scheme due to which the 13 claimant(s) received the compensation within 120 days of the accident", the Bench noted.

In 2017, the top Court directed all States to implement the ‘Modified CTAP’.

But in M.R. Krishna Murthi Vs. The New India Assurance Co. Ltd., the Supreme Court was apprised of the fact that there was no effective implementation of modified CTAP by Claim Tribunals at all India level.

Thereafter, the Court directed National Legal Services Authority to take up the matter and monitor the same in co­ordination and co21 operation with various High Courts. Further, directions were also given to State Judicial Academies to sensitize the Presiding Officers of Claim Tribunals, senior police officials, and insurance companies for the implementation of modified CTAP. Lastly, this Court also directed the Claim Tribunals pan India to implement the ‘Motor Accident Claims Annuity Deposit Scheme’.

Subsequently, Chapter XI – Insurance of Motor Vehicles against third party risks’ and Chapter XII – Claims Tribunals were amended as per the Motor Vehicle Amendment Act, 2019

On Section 146, whether insurance of motor vehicle is made necessary, the Bench opined that,

"On perusing the MV Amendment Act, in particular Section 146 of Chapter XI, it is clear that a motor vehicle cannot ply on public place nor is allowed to be used at the public place unless insured. The exemption from insurance has been prescribed to the vehicles owned by the Central Government, State Government, local authority or any State Transport Undertaking, if the vehicle is used for the purpose not connected with any commercial enterprise...."

The Bench also went through the relevant provisions to process the claim before the Tribual for grant of compensation.

In this case, the Bench dismissed the appeal and reconfirmed the MACT's and High Court's orders.

Case Title: Gohar Mohammed Versus Uttar Pradesh State Road Transport Corporation & others | Civil Appeal No. 9322 OF 2022

Citation : 2022 LiveLaw (SC) 1040

For Petitioner(s) Mrs. Rani Chhabra, AOR Ms. Riya Sethi, Adv.

For Respondent(s) Ms. Garima Prashad, Sr. Adv. Mr. Nishit Agrawal, AOR Mr. Shadab Khan, Adv. Ms. Kaniskha Mittal, Adv. Ms. Upasna Agrawal, Adv. Ms. Pooja Agrawal, Adv. Mr. Sameer Abhyankar, AOR Mr. S.P. Jain, Adv. Ms. Sakshi Kakkar, AOR Mr. Shakti Singh, Adv. Ms. Pinky Dubey, Adv. Mr. Vivek Gupta, AOR Mr. Mrinmay Bhattmewara, Adv. Mr. Ankit Verma, Adv. Samprati Bhattmewara, Adv.

Headnotes

Motor Vehicles Act 1988-  Section 159 - Supreme Court issues a slew of directions for immediate registration of First Accident Report by the Police immediately after a motor vehicle accident -The Court directed the Police department of all states to develop a specialized unit and post trained police officers in every police station within three months for the effective implementation of the MV Amendment Act and the Rules framed thereunder

Motor Vehicles Act 1988- Section 149- The General Insurance Council and all insurance companies are directed to issue appropriate directions to follow the mandate of Section 149 of the M.V. Amendment Act and the amended Rules

Motor Vehicles Act 1988- In case the claimant(s) or legal representative(s) of the deceased have filed separate claim petition(s) in the territorial jurisdiction of different High Courts, in the said situation, the first claim petition filed by the claimant(s)/legal representative(s) shall be maintained by the said Claims Tribunal and the subsequent claim petition(s) shall stand transferred to the Claims Tribunal where the first claim petition was filed and pending. It is made clear here that the claimant(s) are not required to apply before Supreme Court Court seeking transfer of other claim petition(s) though filed in the territorial jurisdiction of different High Courts. The Registrar Generals of the High Courts shall take appropriate steps and pass appropriate order in this regard in furtherance to the directions of this Court.

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