Supreme Court Advocates Direct Bank Transfers for Motor Accident Claims

The Supreme Court has directed insurance companies to transfer motor accident claim amounts directly to claimants' bank accounts to prevent delays. Highlighting digital advancements, the bench suggested this new practice amidst a backdrop of increasing pending claim cases. The court emphasized the convenience of direct transfers, aligning with modern payment systems.

In a significant move to expedite motor accident claims, the Supreme Court directed insurance firms to transfer compensation amounts directly to claimants' bank accounts. This directive, made by Justices JK Maheshwari and Rajesh Bindal, aims to eliminate delays commonly experienced when funds are deposited with tribunals.

The ruling comes amid a rising backlog of motor accident claim cases. By the end of 2022-23, 10,46,163 cases were pending, a notable increase from three years prior. With technological advances, the bench noted the potential for transactions to occur seamlessly, emphasizing the country's digital payment achievements.

Furthermore, the court highlighted the responsibility of banks in cases of minor claimants, ensuring compliance with tribunal-directed deposits. The directive extends beyond motor insurance, suggesting similar practices for any monetary compensations, thereby reinforcing the judicial push towards digital efficiency.

(With inputs from agencies.)