Guidelines for conduct of MACT claims

16/03/2021

Motor Vehicles Act, 1988 (59 of 1988), Section 158(6) (Section 159 post 2019 amendment) – Guidelines laid down for conduct of claim cases under the Motor Vehicles Act.

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(2021-2)202 PLR 111 (SC) = 2021 SCeJ 329

16th March, 2021


Motor Vehicles Act, 1988 (59 of 1988), Section 158(6) (Section 159 post 2019 amendment) – Guidelines laid down for conduct of claim cases under the Motor Vehicles Act.

A. Accident Information Report-

The jurisdictional police station shall report the accident under Section 158(6) of the Act (Section 159 post 2019 amendment) (hereinatfer “the report”) to the tribunal and insurer within first 48 hours either over email or a dedicated website.

B.Detailed Accident Report-

Police shall collect the documents relevant to the accident and for computation of compensation and shall verify the information and documents. These documents shall form part of the Report. It shall email the Report to the tribunal and the insurer within three months. Similarly the claimants may also be permitted to email the application for compensation with supporting documents, under Section 166 to the tribunal and the insurer within the same time.

C. The tribunal shall issue summons along with the Report or the application for compensation, as the case may be, to the insurer by email.

D. The insurer shall email their offer for settlement/response to the Report or the application for claim to the tribunal along with proof of service on the claimants.

E. After passing the award, the tribunal shall email an authenticated copy of the award to the insurer.

F. The insurer shall satisfy the award by depositing the awarded amount into a bank account maintained by the tribunal by RTGS or NEFT. For this purpose the tribunal shall maintain a bank account and record the relevant account details along with the directions for payment to the insurer in the award itself.

G. Each tribunal shall create an email ID peculiar to its jurisdiction for receiving the emails from the police and the insurer as mentioned above. Similarly, all insurer throughout India shall also create an email ID peculiar to the jurisdiction of each claim tribunal. These email IDs would be prominently displayed at tribunal, the police stations and the office of the insurers for the benefit of the claimants. Similarly, these email IDS shall also be prominently displayed on the website maintained by the tribunal and the insurer.

H. Insurers shall appoint nodal officers for each tribunal and provide their contact details, phone and mobile phone numbers, and email address to Director Generals of State Police and the tribunals.

(I) Tamil Nadu and NCT of Delhi have already progressed from having email accounts for submission of accident reports by the police to the tribunal and the insurer, to operating an online platform/website for submission of accident report under Section 159. These online platform/websites shall be suitably be modified for submission of claimants’ application for compensation under Section 166 of the Act as well insurers’ response to the accident report or the claim petition as the case may be.

(J) Each State having an independent online platform for submission of accident reports, claims and responses to claims, will hamper efficient adjudication of claims, especially where the victim of the accident is not a resident of State where accident has occurred. Therefore, Central Government shall develop an online platform accessible to the tribunals, police authorities and insurers throughout India.


In a Nutshell

Supreme Court has passed below direction on 16th March 2021 and will apply across the country so that uniform practice is followed.

  • Police shall intimate accident to MACT & insurer within 48 hours over email or dedicated website.

  • Police shall collect documents relevant for computation of compensation & verify the information.

  • Police shall email the report and documents to MACT & insurer.

  • Claimants may be permitted to email the claim application with supporting documents U/s. 166 to MACT & Insurer.

  • MACT shall issue summons, report or claim application to the insurer by email.

  • Insurer shall email offer to MACT.

  • MACT shall email authenticated award copy to insurer.

  • Insurer shall pay award amount in bank account of MACT by NEFT or RTGS.

  • MACT shall maintain Bank account and record.

  • Each MACT shall create an email ID for receiving emails from police and insurer.

  • All insurers shall also create email ID peculiar to jurisdiction of each claim tribunal.

  • Email IDs shall be prominently displayed at MACT, police station and office of insurers.

  • Email IDs shall be prominently displayed on the website maintained by the MACT and insurer.

  • Insurers shall appoint nodal officer for each MACT and provide their contact details, phone, mobile & email IDs to DGP of States and MACT.

Below two aspect are also considered for passing direction, however some more time required to work out the time period within which they can be implemented and necessary infrastructure for the same created, for which some more discussion required with all stake holders.

  1. Online platform/website operating at TN & Delhi shall be suitably modified for submission of claim application and response by insurer.

  2. Central Government shall develop an online platform accessible to the MACT, Police and insurers throughout India.