Reducing the judiciary's burden in motor insurance claim settlements

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Subscribe to enjoy similar stories. Every year, countless Indians find themselves entangled in the complexities of third-party motor insurance claims. Unfortunately, the current system relies heavily on the judicial process for settlement and cases often drag on for at least four years on average before they are resolved in a Motor Accident Claims Tribunal (MACT).

This prolonged process not only delays justice but also exacerbates the challenges faced by victims and their families. A significant reason is the legal proceedings where the advocates of both parties present their cases before the MACT. The sheer volume of cases exacerbates the delays, creating a massive backlog that the judicial system, with its limited resources, struggles to manage.

At its core, a third-party loss aims to compensate affected parties for property damage or bodily injury, and in many tragic cases, the loss of life. If the fault and liability are clearly established, the assessment becomes more straightforward, especially for death claims where the Supreme Court has already provided clear guidelines. However, injury claims are more complex as they depend on the nature of the injuries, treatment, recovery periods, and other factors.

The courts often get cases solely for the assessment of compensation—a task that is more mathematical than legal. Why should courts, already burdened with a heavy caseload, be tasked with what is essentially accounting work? The delay is compounded by the non-availability of the required documents, a common issue that leads to prolonged proceedings. Comparatively, other countries have more efficient systems in place, with judicial resources allocated in proportion to the population and caseload.