J.R. Midha, J. (Oral):

1. India has dubious distinction of having worst record of road accidents. According to the latest Road Transport Ministry report, a total of 4,90,383 road accidents were reported in 2012 resulting in 1,38,258 deaths i.e. an average of one road accident every minute resulting in one death every 3.8 minutes which is highest in the world. Road accidents are a human tragedy which involves high human suffering and they impose huge socio-economic costs in terms of untimely deaths, injuries and loss of potential income. The ramifications of road accidents can be colossal and its negative impact is felt not only on individuals and their families but also on the economy. According to the report of World Health Organization, the road accidents constitute highest cause of death in the age group of 15 to 29 and third highest in the age group of 30 to 42. Consequently, road safety is an important issue of national concern.

2. The victims of the road accident are doubly unfortunate, first in getting involved in an accident and second, in not getting compensation. In developed countries, insurance companies, immediately, upon being notified of the accident, make their inquiries, voluntarily assess and pay the compensation to the victim. The matters go to the Court only where the insurance company denies the claim or where the victim is not satisfied with the quantum of compensation paid.

3. The Insurance Companies in our country are aware of this procedure and they actually implement the same in all cases of loss/damage other than the cases of injury/death in road accident cases. If a car is damaged in an accident, the Insurance Company immediately appoints a surveyor who inspects the vehicle on the same day, takes the photographs, the estimates the loss and give instructions to the workshop for repair of the vehicle within 24 hours. The payment of the expenses on the repair of the vehicle is paid directly to the workshop.

4. In case of death of victims of road accident, the principles of calculation of compensation are well settled. The age, income of the victim and the number of dependants of the deceased victim have to be verified to compute the compensation. These three things can be easily ascertained upon visit to the house of the deceased victim immediately after the accident. At the time of grief, there would not be any possibility of manipulation/exaggeration and the compensation on that basis could be tendered to the family of the deceased victim. In the case of injury, the visit to the hospital and statement of the Medical Superintendent can give a very clear estimate of the expenditure likely to be incurred on the treatment which can be tendered to the victim immediately. However, the helpless victims are compelled to approach the Motor Accident Claims Tribunal, where the cases proceed like normal civil suits and it takes years to adjudicate the matter.

5. In Rajesh Tyagi v. Jaibir Singh, IV (2010) ACC 847, this Court, vide order dated 5th November, 2009, appointed a Committee comprising of Secretaries of the Ministries of Road Transport and Highways; Finance (Department of Insurance); Law & Justice and Company Affairs; and Joint Commissioner of Delhi Police to evolve a mechanism for time-bound settlement of motor accident claims within 90 to 120 days. The said Committee consulted all the seventeen Insurance Companies and submitted a report whereupon this Court formulated a “Claims Tribunal Agreed Procedure” which came into force in National Capital Territory of Delhi with effect from 2nd April, 2010.

6. The ‘Claims Tribunal Agreed Procedure’ provides: first, the police to carry out complete investigation within 30 days and submit a Detailed Accident Report (DAR) to the Motor Accident Claims Tribunal; second, the Insurance company to compute the compensation within 30 days thereafter and inform the Tribunal; third, if the amount offered is fair and acceptable to the claimant, it shall be paid with