High Court suggests withdrawal of appeals in accident claims less than Rs 7.5 lakh

While disposing of 18 accident compensation claim cases as withdrawn from the respective Claims Tribunals, Justice N Anand Venkatesh said the court understood the desperation of compensation claimants seeking an expeditious compromise to get their lives back on track. Pointing out that 9,42,805 claims were pending at various levels in 2018-19, and about 7,81,563 pending in 2019-20 (the data for the latter was stated to be incomplete), Justice Venkatesh said compromise was the way to go in such claims. Both sides should have a genuine give-and-take approach as demonstrated in the claims dealt with by the court, he added.

The judge observed that motor insurance was compulsory for the benefit of the victims and that the Motor Vehicles Act, 1988, was welfare premised, and added the court was deliberating if the Centre, IRDA, and State-run and private insurance firms can come to agree that appeals in cases where the compensation is less than Rs 7.5 lakh could be withdrawn as a one-off gesture in these pandemic times.

The court was not issuing a direction to consider the suggestion, Justice Venkatesh said, and added: “The insurance companies and State Transport Corporations may also have been hit by this pandemic. But, the need to strike a balance between the two – victims vs the insurers/STCs – suggests lot of victims need a desperate rescue and recovery package. Such a measure may unclog the pending appeals.”