Pay compensation money only through direct bank transfers

In a bid to thwart this, the Madras High Court has constantly come out with checks and balances to ensure expeditious disposal of claims so as to ensure early payment and receipt of adequate compensation by the innocent motor accident victims and claimants. 

Along these lines, MHC has recently come with strict guidelines to make sure the claimants are provided an opportunity to take full control of the awards granted to them to manage their lives. It has directed that hereafter all disbursal of compensation should be done through direct bank transfer (DBT) to the bank accounts of the claimants. 

A division bench comprising Justice R Sudhakar and Justice S. Vaidyanathan held that it is high time we embraced technological change and give up the practice of crossed cheques and drafts, which paves way for leakage and does not make sure that the money actually reaches the claimant. 

Now following the high court order, it has now been mandatory for insurance companies and other agencies paying compensation in motor accident and other cases, to transfer the sum to the bank account of the litigant through an electronic mode like Real Time Gross Settlement (RTGS) or National Electronic Fund Transfer (NEFT). 

It’s a well-known fact that in the event of an accident, even before the victim can be brought to the house, the advocate (also known as ambulance chaser) arrives. He assures them of all help and even parts with money for the funeral expenses or hospital expenses, assuring them of obtaining adequate compensation. 

This process led to the claim amount being allegedly deposited into the account of the advocate, who in turn detects the reported expenses he had made, his fees and other expenses finally resulting in the claimant receiving a paltry sum. 

Another aspect playing truant in such accident claims has also been over the divergent views with regard to assessment of disability. It is said that the expert witnesses or doctors, who appear before the tribunals are stock witnesses. 

They neither know standards nor confirm to any uniform practices. Since they do not follow any criteria, the tribunals under work pressure are forced to accept them with slight modifications. This procedure and practice in assessment of permanent disability by various doctors in various claims tribunals have led to huge pendency of appeals before the high court as well. 

Justice R Sudhakar, noting that it is not rocket science to identify the personnel who appear in these proceedings as they are found in the list of witnesses before various tribunals over the state very regularly, said there has to be a uniform and consistent practice and procedure in the assessment of permanent disablement and possibly functional disability to ensure expeditious disposal of claims and avoid appeals. Based on this, the division bench has directed that henceforth, disability certificate will be issued only by medical boards and not merely by doctors.