Tuesday, 31 May 2016

Landmark Judgment of Delhi high court on procedure to be followed in MACT case

The Claims Tribunal Agreed Procedure formulated by the
Committee of the Secretaries/nominees of the Ministries of
Road Transport and Highways; Finance (Department of
Insurance); Law, Justice and Company Affairs; and Joint
Commissioner of Police (Northern Range), to which all the
Insurance Companies have consented, has been accepted by
this Court vide orde
r dated 16th December, 2009. The Delhi
Police has given their consent to implement the Claims
Tribunal Agreed Procedure on a trial basis as a pilot project
for a period of six months. 
. The approved Claims Tribunal Agreed Procedure has
been appended to this order (which will be uploaded on the
internet) so as to enable access by all concerned.

9. The copy of this order along with order dated 16th
December, 2009 and Claims Tribunal Agreed Procedure, as
finally modified and approved be sent to all Claim Tribunals
and Delhi Legal Services Authority through the Registrar
(Vigilance) of this Court. All the Claims Tribunals shall send a
monthly report giving particulars of total number of cases
received by them in a tabular form containing the particulars
of age, occupation, income, number of dependents, amount
offered by the Insurance Company and the amount awarded
by the Claims Tribunals in death cases and relevant
particulars in injury cases. The monthly report of the Claims
Tribunals be sent to this Court through Registrar (Vigilance).
The report with respect to the period between 15th January,
2010 to 14th February, 2010 be sent to this Court by 28th
February, 2010. The same be placed before this Court along
with the comments of Registrar (Vigilance) by 15th March,
2010, which shall be considered on 23rd March, 2010.
10. Copy of this order along with order dated 16th
December, 2009 and approved Claims Tribunal Agreed
Procedure be also sent to the Principal Secretary (Law),
Government of NCT of Delhi for issuing appropriate
instructions to all authorities under Government of NCT of
Delhi for compliance of the order dated 16th December, 2009.
11.The copy of this order be given Dasti to learned amicus
curiae, Committee members, Standing Counsel for Union of

India, Additional Standing Counsel for Delhi Police, Delhi
Legal Services Authority and all the Insurance Companies.
IN THE HIGH COURT OF DELHI AT NEW DELHI
 FAO No.842/2003
Date of Decision: 21st December, 2009
RAJESH TYAGI & ORS. ..... Appellants

 versus
 JAIBIR SINGH & ORS. ..... Respondents

CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA




1. The Claims Tribunal Agreed Procedure formulated by the
Committee of the Secretaries/nominees of the Ministries of
Road Transport and Highways; Finance (Department of
Insurance); Law, Justice and Company Affairs; and Joint
Commissioner of Police (Northern Range), to which all the
Insurance Companies have consented, has been accepted by
this Court vide order dated 16th December, 2009. The Delhi
Police has given their consent to implement the Claims
Tribunal Agreed Procedure on a trial basis as a pilot project
for a period of six months. However, certain clarifications to
the scheme have been made by this Court vide order dated

16th December, 2009 which have been incorporated in the
Claims Tribunal Agreed Procedure.
2. Mr. Atul Nanda, the learned Standing Counsel for Union
of India raised two concerns with respect to the order dated
16th December, 2009 which are as under:-
(i) In para 7 of the order dated 16th December, 2009,
the learned Tribunals have been directed to
compute the compensation payable in death
cases according to the principles laid down by the
Hon’ble Supreme Court in the case of Sarla
Verma Vs. Delhi Transport Corporation, 2009
(6) Scale 129, (2009) 6 SCC 121, 2009 ACJ
1298. Mr. Atul Nanda submits that there are
other judgments in which different view has been
taken and, therefore, the learned Tribunals may
be left free to follow the law laid down in other
judgments as well.
(ii) The direction in para 5(xii) of the order dated 16th
December, 2009 to the Claim Tribunals to ensure
that the claimants are awarded just compensation
in accordance with law, be deleted.
3.With respect to the first contention, it is hereby clarified
that the order dated 16th December, 2009 is an interim order
based on the Claims Tribunal Agreed Procedure accepted by
all the seventeen Insurance Companies and Delhi Police for
expeditious settlement of accident cases for a limited period

of six months from 15th January, 2010 to 14th July, 2010. This
is a pilot project on trial basis with a object that the
claimants get the compensation within a period of 120 days
from the date of the accident. Unless the scheme is clear
and definite in all respects, the settlement of death cases
within a fixed time frame may not be possible. It is noted
that on average, there are about 20 accident cases in a
month in Delhi and, therefore, this scheme would cover
approximately 120 cases over a period of six months. The
clarification given in para 7 of the order dated 16th
December, 2009 is to make the scheme definite and clear
and not to leave any confusion in the applicability of the
scheme. It is also noted that all the nationalized Insurance
Companies had in the meeting held in May, 2009 recorded in
the Minutes of the Meeting dated 29th May, 2009 agreed to
settle all the pending death cases in Delhi according to the
principles laid down by the Hon’ble Supreme Court in the
case of Sarla Verma (supra). Similar proposal had also been
accepted by the Insurance Companies before the Hon’ble
Supreme Court in the meeting of the Arrears Committee.
Para 7 of the order dated 16th December, 2009 is in line with
the accepted stand of the Insurance Companies. However, if
still there is any difficulty for the Insurance Companies to
settle the cases in terms of the order dated 16th December,
2009, the liberty is given to them to approach this Court in
terms of para 12 of the order dated 16th December, 2009 for

appropriate directions.
4. With respect to the second objection that the Tribunals
should not examine whether the amount offered by the
Insurance Companies is in accordance with law or not, it is
clarified that the purpose of the scheme is to expedite the
payment of compensation to the victims of the road
accidents in accordance with law without compromising the
quality of justice and, therefore, the directions given to the
learned Tribunals in this regard are necessary to uphold the
rule of law.
5. It is also to be noted that the purpose of procedure is to
help dispense justice. Considering the situation in the past
and the fair approach adopted by the parties before this
Court, the common goal being quicker adjudication, we have
to find a way forward to rid the inefficiencies of the past.
6. The orders dated 8th June, 2009 and 5th November,
2009 stand modified by the order dated 16th December, 2009
in so far as the Insurance Companies had been directed to
deposit the admitted amount.
7. List on 8th January, 2010 for compliance of directions
given in para 18 of the order dated 16th December, 2009 and
on 23rd March, 2010 for consideration of the first report of the
Committee.
8. The approved Claims Tribunal Agreed Procedure has
been appended to this order (which will be uploaded on the
internet) so as to enable access by all concerned.

9. The copy of this order along with order dated 16th
December, 2009 and Claims Tribunal Agreed Procedure, as
finally modified and approved be sent to all Claim Tribunals
and Delhi Legal Services Authority through the Registrar
(Vigilance) of this Court. All the Claims Tribunals shall send a
monthly report giving particulars of total number of cases
received by them in a tabular form containing the particulars
of age, occupation, income, number of dependents, amount
offered by the Insurance Company and the amount awarded
by the Claims Tribunals in death cases and relevant
particulars in injury cases. The monthly report of the Claims
Tribunals be sent to this Court through Registrar (Vigilance).
The report with respect to the period between 15th January,
2010 to 14th February, 2010 be sent to this Court by 28th
February, 2010. The same be placed before this Court along
with the comments of Registrar (Vigilance) by 15th March,
2010, which shall be considered on 23rd March, 2010.
10. Copy of this order along with order dated 16th
December, 2009 and approved Claims Tribunal Agreed
Procedure be also sent to the Principal Secretary (Law),
Government of NCT of Delhi for issuing appropriate
instructions to all authorities under Government of NCT of
Delhi for compliance of the order dated 16th December, 2009.
11.The copy of this order be given Dasti to learned amicus
curiae, Committee members, Standing Counsel for Union of

India, Additional Standing Counsel for Delhi Police, Delhi
Legal Services Authority and all the Insurance Companies.
12. Copy of this order along with the copy of the order
dated 16th December, 2009 and the Agreed Claims Tribunal
Procedure be also sent to Mr. S. Sundar, Chairman of the
Expert Committee constituted by the Ministry of Road
Transport and Highways.
 J.R. MIDHA, J
 DECEMBER 21, 2009

Note : Finalized Claims Tribunal Agreed Procedure attached (11 pages).

THE CLAIMS TRIBUNAL AGREED PROCEDURE
(As approved by Delhi High Court)
CHAPTER 1- SCOPE AND DEFINITIONS
1. Scope: This procedure shall be applicable for all claims filed before the Claims
Tribunals in the NCT of Delhi.
2. Definitions. - (1) In this procedure, unless the context otherwise requires,-
(a) “Act” means the Motor Vehicles Act,1988 ( 59 of 1988);
(b) “accident” means an accident involving use of motor vehicle at a public place;
(c) “Claims Tribunal” means a Motor Accidents Claims Tribunal constituted
under section 165 of the Act;
(d) “Clause” shall refer to the Clauses of this Agreed procedure;
(e) “Form” means a form appended to The Delhi Motor Accident Claims
Tribunal Rules, 2008;
(e) “insurance company” means the insurance company with which a motor
vehicle involved in an accident was insured on the date of the accident;
(f) “investigating police officer” means the station house officer of a police station
within whose jurisdiction an accident involving a motor vehicle occurs, and
includes any police officer subordinate to him entrusted with the investigation
of the case;
(g) “legal representative” shall have the same meaning assigned to it under clause
(11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908).
(h) “Rule” or “2008 Rules” shall bear reference to The Delhi Motor Accident
Claims Tribunal Rules, 2008.
(2) All other words and expressions used herein but not defined and defined in
Motor Vehicles Act, 1988 or The Delhi Motor Accident Claims Tribunal Rules,
2008, shall have the meanings respectively assigned to them in that Act, or the
Rules as the case may be.
CHAPTER 2- RECEIPT OF INFORMATION, VERIFICATION AND THE DETAILED
ACCIDENT REPORT
3. Receipt of information of an accident and duties of the investigating police
officer - (1) The Investigating Police Officer may receive information from one or
more source including but not limited to:
(a) The driver/owner of the vehicle involved in the accident, by way of a
report as contemplated under Section 134 of the Act;
(b) The Claimant;
(c) A witness to the accident or any other informant or source of
information;
(d) The hospital or medical facility where the Deceased or Injured may
have been taken to for medical attention.
(2) On receipt of the above information, it shall be the duty of the investigating
police officer, as expeditiously as possible not later than 48 hours to –
(a) Intimate the factum of the accident to the Claims Tribunal within whose
territorial jurisdiction the accident has occurred, which shall be entered in a
register for such purpose ;
(b) If the insurance particulars are available by that time, the Investigating
 Officer shall also send the intimation to the concerned Insurance Company
 by e-mail.
(c) The factum of the accident shall also be uploaded by Delhi Police on its
website.
(d) The intimation of the accident shall contain all relevant particulars

including the date, time and place of accident, registration number of the
offending vehicle, policy particulars, names and addresses of the owner and
driver of the offending vehicle and the name and mobile number of the
Investigating Officer.
(e) In terms of Rule 3(1)(a) have the scene of accident photographed from such
angles as to clearly depict, the lay-out and width, etc. of the road(s) or place,
as the case may be, the position of vehicle(s), or person(s), involved, and
such other facts as may be relevant so as to preserve the evidence in this
regard, inter-alia for purposes of proceedings before the Claims Tribunal;
(f) Gather full particulars, and seek the following documents from the parties
as under:
(A) From the owner/driver, in terms of Section 133/134 and 158
of the Act and Rule 3 of the Rules:
i. The circumstances of the occurrence, including the
circumstances if any for not taking reasonable steps to
secure medical attention to the injured person in terms of
Section 134(a) of the Act;
ii. the date, time and place of the accident;
iii. particulars of the persons injured or deceased in the
accident;
iv. name and address of the driver and the owner, and the
driving license of the driver and that of the conductor in the
case of a stage carriage, passenger or goods vehicle;
v. the Insurance Policy or in the alternative a valid cover note
provided that such cover note should not be more than
sixty days old;
vi. the certificate of insurance;
vii. the certificate of registration;
viii.in the case of a transport vehicle, the fitness certificate
referred to in Section 56 of the Act and the permit.
(B) From the Claimant(s), victims of an accident or their legal
representatives, as the case may be:
(i) In case of death;
(a) Proof of age and a photo- ID of the deceased at the time of
accident;
(b) Death certificate and post mortem report;
(c) Proof of income of the deceased at the time of the
accident,
a. in the form of pay slip/salary certificate in the case of a
government/semi-government employee,
b. certificate of the employer and bank statements of the
last six months of the deceased reflecting payment of
salary in the case of a private employee,
c. I.T. returns in the case of a self-employed person;
(d) Details of the dependents, i.e. their age, occupation and
marital status and proof of dependency in the form of
affidavits, address and other contact details;
(e) Details and copies of medical bills and expenses;
(f) A brief statement of the facts surrounding and quantum of
compensation intended to be claimed;
(g) Details of the claims tribunal, where the Claimants have
preferred an application under Section 163A or Section
166, if any, as on the date of such verification or
investigation by the investigating police officer;
 (ii) In case of an injury case
(a) Proof of age and a Photo- Insured, address and other
contact details of the injured at the time of accident;
(b) Proof of income of the Injured at the time of the accident,
a. in the form of pay slip/salary certificate in the case
of a government/semi-government employee,
b. certificate of the employer and bank statements of
the last six months of the injured reflecting

payment of salary in the case of a private
employee,
c. I.T. returns in the case of a self-employed person;
(c) Disability certificate issued by a Government Hospital or a
recognized private hospital;
(d) MLC/accident register extract of the hospital and MLR
(e) Details and copies of medical bills and expenses; in case of
long term treatment the Investigating Police officer shall
record the details of the same and the Claimant may
furnish such bills before the Claims Tribunal;
(f) Proof of absence from work [where loss of income on
account of injury is being claimed] i.e. certificate from the
employer and extracts from the attendance register or log
record or like records;
(g) A brief statement of the facts surrounding and quantum of
compensation intended to be claimed;
(h) Details of the claims tribunal, where the Claimants have
preferred an application under Section 163A or Section
166, if any, as on the date of such verification or
investigation by the investigating police officer;
and thereupon the police investigating officer shall either to the above
documents in possession against receipt, or retain the photocopies of the same,
after attestation thereof by the person producing the same;
(3) The investigating police officer shall verify the genuineness of the documents
mentioned in Clause 3(2) by obtaining confirmation in writing from the office
or authority or person purporting to have issued the same or by such further
investigation or verification as may be necessary for arriving at a conclusion of
genuineness of the document or information in question, including but not
limited to verifying the license of the driver and permit of the vehicle, where
applicable, from the registering authority;
(4) The investigating police officer shall not release and shall impound the vehicle
involved in the accident, when:
a. it is found that it is not covered by policy of insurance of third party
risks, taken in the name of the registered owner, or
b. when the registered owner fails to furnish copy of such insurance
policy, or where the driver fails to furnish the driving license
and shall bring this to the notice of the Magistrate having jurisdiction over the
area, where the accident occurred. He shall further report to the Magistrate, as
to why the registered owner has not been prosecuted for offence punishable
under section 196 of the Act, where such prosecution has not been preferred,
despite existence of facts constituting such an offence.
(5) In all cases where no driving license has been furnished by the driver, or permit
and insurance policy by the owner the investigating police officer shall take a
statement in the form of an affidavit from the driver and or the owner, as the
case may be as to the details of such driving license including the class and type
of vehicle he is licensed to drive, permit and or Insurance Policy in case of the
owner and the validity thereof as on the date of the accident. In such cases the
investigating police officer shall proceed to investigate into the properties and
assets of the owner of the vehicle and append the same to his report.
4 Preparation and forwarding of the Detailed Accident Report (DAR): (1) After
completion of the above collection and verification of the documents and investigation
as may be required, the investigating police officer shall complete the preparation of a
detailed accident report [hereinafter referred to as DAR] in Form “A” not later than
thirty days from the date of the accident. In terms of Rule 3 (1)(c) such DAR shall be

accompanied by requisite documents which shall include copy of the report under
section 173 of the Code of Criminal Procedure, 1973(2 of 1974), medico legal certificate,
post-mortem report (in case of death), first information report, photographs, site plan,
mechanical inspection report, seizure memo, photocopies of documents mentioned in
Clause 3(2) above, as also a report regarding confirmation of genuineness thereof, if
received, or otherwise action taken.
(2) Immediately on completion of the above DAR, the investigating police officer shall
forward a copy of the DAR, under its seal, duly receipted:
(i) To the Claims Tribunal, under a duly attested affidavit of the
investigating police officer-
-where a claim has already been preferred by the Claimant to such
Claims Tribunal or
- where no such claim has been preferred, then before the Claims
Tribunal in whose territorial jurisdiction the accident has occurred.
(ii) To the Claimant (s) or victims of the accident or their legal
representative(s), as the case may be at the address supplied by the Claimant
to the investigating police officer, free of charge;
(iii) To the owner/driver at the addressed supplied by the owner /driver to
the police investigating officer, at a cost of Rs. Five per page;
(iv) To the nodal officer of the concerned Insurance Company at a cost of
Rs. ten per page.
(3) The Investigating Officer of the Police shall also furnish a copy of Detailed
Accident Report along with complete documents to Secretary, Delhi Legal Services
Authority, Central Office, Pre-Fab Building, Patiala House Courts, New Delhi.
Delhi Legal Services Authority shall examine each case and assist the Claims
Tribunal in determination of the just compensation payable to the claimants in
accordance with law.
(4) Where the Investigating Officer is unable to complete the investigation of the case
within 30 days for reasons beyond his control, such as cases of hit and run
accidents, cases where the parties reside outside the jurisdiction of the Court cases,
where the driving licence is issued outside the jurisdiction of the Court, or where the
victim has suffered grievous injuries and is undergoing treatment, the Investigating
Officer shall approach the Claims Tribunal for extension of time whereupon the
Claims Tribunal shall suitably extend the time in the facts of each case.
(5) The Investigating Officer shall produce the driver, owner, claimant and eyewitnesses
before the Claims Tribunals along with the Detailed Accident Report.
However, if the Police is unable to produce the owner, driver, clamant and eyewitnesses
before the Claims Tribunal on the first date of hearing for the reasons
beyond its control, the Claims Tribunal shall issue notice to them to be served
through the Investigating Officer for a date for appearance not later than 30 days.
The Investigating Officer shall give an advance notice to the concerned Insurance
Company about the date of filing of the Detailed Accident Report before the
Claims Tribunal so that the nominated counsel for the Insurance Company can
remain present on the first date of hearing before the Claims Tribunal.
(6) The duties enumerated in Clause (3) and (4) above shall, as per Rule 3(2) of the
2008 Rules be construed as if they are included in Section 60 of the Delhi Police
Act 1978 (34 of 1978) and any breach thereof shall entail consequences envisaged
in that law, as provided for under Rule 3(2).
5. Duties of the registering authority.- It shall be the duty of the concerned registering
authority to-
(a) submit a detailed report in Form “D” to the Claims Tribunal regarding a motor
vehicle involved in an accident or licence of the driver thereof within fifteen days of
the receipt of direction in Form “E”;
(b) furnish within fifteen days, the requisite information in Form “D” on receiving
the application in Form “F”, by the person who wishes to make an application for
compensation or who is involved in an accident arising out of use or his next of kin,
or to the legal representative of the deceased or to the insurance company, as the
case may be; Provided that information shall be given to the insurance company on
payment of rupees ten only per page.

(c) assist the police in verification process set out in Procedure Clause 3 and 4 above
and furnish to the investigating police officer a report in Form „D‟ within 15 days of
a request from the police investigating officer regarding verification or genuineness
of any document regarding a motor vehicle involved in an accident or the license of
the driver thereof.
CHAPTER 3 -CLAIMS INSTITUTED ON THE BASIS OF DETAILED ACCIDENT
REPORT
6. Procedure on receipt of the detailed accident report: (1) The Claims Tribunals
shall examine whether the Detailed Accident Report is complete in all respects and
shall pass appropriate order in this regard. If the Detailed Accident Report is not
complete in any particular respect, the Claims Tribunal shall direct the Investigating
Officer to complete the same and shall fix a date for the said completion.
(2) The Claims Tribunals shall treat the Detailed Accident Report filed by the
Investigating Officer as a claim petition under Section 166(4) of the Motor Vehicles
Act. However, where the Police is unable to produce the claimants on the first date
of hearing, the Claims Tribunal shall initially register the Detailed Accident Report
as a miscellaneous application which shall be registered as a main claim petition
after the appearance of the claimants.
(3) The Claims Tribunal shall grant 30 days time to the Insurance Company to
examine the Detailed Accident Report and to take a decision as to the quantum of
compensation payable to the claimants in accordance with law. The decision shall
be taken by the Designated Officer of the Insurance Company in writing and it shall
be a reasoned decision. The Designated Officer of the Insurance Company shall
place the written reasoned decision before the Claims Tribunal within 30 days of the
date of complete Detailed Accident Report.
(4) The compensation assessed by the Designated Officer of the Insurance
Company in his written reasoned decision shall constitute a legal offer to the
claimants and if the claimants accept the said offer, the Claims Tribunal shall pass a
consent award and shall provide 30 days time to the Insurance Company to make
the payment of the award amount. However, before passing the consent award, the
Claims Tribunal shall ensure that the claimants are awarded just compensation in
accordance with law. The Claims Tribunal shall also pass an order with respect to
the shares of the claimants and the mode of disbursement.
(5) If the claimants are not in a position to immediately respond to the offer of
the Insurance Company, the Claims Tribunals shall grant them time not later than
30 days to respond to the said offer.
(6) If the offer of the Insurance Company is not acceptable to the claimants or if the
Insurance Company has any defence available to it under law, the Claims Tribunal
shall proceed to conduct an inquiry under Sections 168 and 169 of the Motor
Vehicles Act and shall pass an award in accordance with law within a period of 30
days thereafter.
(7) Where the Claims Tribunal finds that the D.A.R. and in particular the report
under Section 173, The Criminal Procedure Code, 1974 annexed to such D.A.R.
has brought a charge of rash and negligent driving, or the causing of hurt or grievous
hurt the Claims Tribunal shall register the claim case under Section 166 of The
Motor Vehicles Act,1988. In cases where the DAR does not bring a charge of
negligence or despite the charge of negligence the Claimant(s) before the court chose
to claim on a no-fault basis, the Claims Tribunal shall register a claim case under
Section 163A, The Motor Vehicles Act,1988;
(8) Provided that in cases where the accident in question involves more than one
vehicle and persons connected to all such vehicles stake a claim for compensation,
the D.A.R. shall be treated as an application for compensation claim case shall be
presumed to be a claim case preferred by each of them.

CHAPTER 4- CLAIMS INSTITUTED BY WAY OF AN APPLICATION BY THE
CLAIMANT
7. Applications for compensation.- (1) Every application for payment of compensation
shall be made in Form “G” and shall be accompanied by as many copies, as may be
required, to the Claims Tribunal having jurisdiction to adjudicate upon it, in terms of
Section 165 of the Act.
(2) In terms of Rule 8, there shall be appended to every such application:-
(a) an affidavit of the applicant(s) to the effect that the statement of facts
contained in the application is true to the best of his/her knowledge/belief, as
the case may be, details of previous claims preferred by the applicant(s) with
regard to the same cause of action, or any other accident and if so, what was the
result thereof;
(b) all the documents and affidavits for the proof thereof, and affidavits in
support of all facts on which the applicant relies in context of his/her claim,
entered in a properly prepared list of documents and affidavits:
Provided that the Claims Tribunal may not allow the applicant to rely in
support of his/her claim, on any document or affidavit not filed with the
application, unless it is satisfied that for good or sufficient cause, he/she was
prevented from filing such document or affidavit earlier;
(c) proof of identity of the applicant (s) to the satisfaction of the Claims Tribunal,
unless exempted from doing so for reasons to be recorded in writing by it;
(C) passport size photograph(s) of the applicant(s) duly attested;
(D) reports obtained in Form “C” and Form “D” from investigating police
officer, and registering authority; and if no such report(s) have been
obtained, the reasons thereof;
(E) medical certificate of injuries, or the effect thereof, other than those included
in Form “C”.
 (3) The Claims Tribunal may also require the applicant to furnish the following
information to satisfy itself that spurious or a collusive claim has not been preferred:-
(a) full particulars of all earlier accidents in which the applicant or the
person deceased, as the case may be, has been involved;
 (b) nature of injuries suffered and treatment taken;
(c) the amount of compensation paid in such earlier accidents, name
and particulars of the victim, and of the person who paid the damages; and
(d) Relationship of the applicant(s), if any, with the persons mentioned
in clause (b), and the owner and the driver of the vehicle.
(4) Any application which is found defective on scrutiny may be returned by the
Claims Tribunal for being re-submitted after removing the defects within a specified
period not exceeding two weeks. Every application for compensation shall be registered
separately in appropriate register prescribed as per rule 36.
8. Examination of applicant.- On receipt of an application under Rule8, the Claims
Tribunal may examine the applicant on oath, and the substance of such
examination, if any, shall be reduced to writing.
9. Summary disposal of application.- The Claims Tribunal may, after consideration
of the application and statement, if any, of the applicant recorded under Rule 10,
dismiss the application summarily, if for reasons to be recorded, it is of the opinion
that there are no sufficient grounds for proceeding therewith.
10. Notice to parties involved- If the application for claim is found admissible in terms
of Clause 6(4) and Clause 9 above , the Claims Tribunal shall send to the opposite
parties accompanied by a copy of the application along with all the documents and
affidavits filed by applicant under Rule 8 together, with a notice in Form “I” of the

date on which it will hear the application, and may call them upon to file on that
date a written statement as per Rule 14 in answer to the application.
CHAPTER 5- DUTY OF THE INSURANCE COMPANY ON RECEIPT OF NOTICE AND
PRE-TRIAL SETTLEMENT PROCESS AND COSTS
11. Duties of the insurance company: (1) Immediately upon receipt of intimation, the
Insurance Company shall appoint a Designated Officer for each case. The Designated
Officer shall be responsible for dealing/processing of that case and for taking decision
for the amount of compensation payable in accordance with law after the Detailed
Accident Report by the police.
(2) Without prejudice to its rights and contentions, where in the opinion of the Insurance
Company, a claim is payable it shall confirm the same to the Claims Tribunal within
thirty days of the receipt of complete Detailed Accident Report, by way of an offer
of settlement of claim, with a supporting computation/calculation, under a duly
attested affidavit of the Divisional Officer/ Officer appointed for such purpose.
(3) When on the date of hearing of such application and on receipt of such offer from
the Insurance Company, the Claimant(s) agree to the offer of settlement of the
Insurance Company, the Claims Tribunal shall record such settlement by way of a
consent decree and payment shall be made by the Insurance Company within a
maximum period of thirty days from the date of receipt of a copy of the consent
decree which shall be made available to the parties by the Claims Tribunal within a
maximum period of seven working days from the passing of such decree.
(4) The Insurance Company shall be at liberty to file an application under Section 170,
The Motor Vehicles Act,1988 at any stage of the proceedings and shall be
considered and adjudicated upon by the Claims Tribunal on its own merits.
CHAPTER 6- APPLICATIONS UNDER SECTION 140 OF THE MOTOR VEHICLES
ACT,1988
12. Application for claim on principle of no fault liability:- (1) Every application in case of
claim under Chapter X of the Act, shall be made in part II of Form “G”. The Claims
Tribunal shall, for the purpose of adjudication of the application mentioned in this rule
shall follow such summary procedure as it thinks fit.
(2) The Claims Tribunal shall not reject any application made as per the provisions of
Chapter X of the Act on ground of any technical flaw, but shall give notice to the
applicant and get the defect rectified.
(3) Where the application is not accompanied by reports in From “A” and Form “D”,
the Claims Tribunal shall obtain whatever information is necessary from the police,
medical and other authorities and proceed to adjudicate upon the claim whether the
parties who were given notice appear or not on the appointed date.
(4) Subject to the rights of the Insurance Company to prove breach of the Insurance
Policy in terms of Section 149, The Motor Vehicles Act,1988 the Claims Tribunal shall
expeditiously proceed to award the claims on the basis of reports in Form “A” and
Form “D” and further documents relating to injuries or treatment, if any filed with
affidavit, and report or certificate, if any, issued in compliance with directions under rule
18 The Claims Tribunal in passing an award on such application, shall also issue
directions for apportionment, if required and for securing the interests of the claimants,
following the provisions of rules 26 and 27.
CHAPTER 7- TRIAL AND AWARD
13. Framing of issues.- After considering the application, the written statements, the
examination of the parties, if any, and the result of any local inspection, if made, the
Claims Tribunal shall proceed to frame and record the issues upon which the decision
of the case appears to it to depend.

14. Determination of issues.-(1) After framing the issues the Claims Tribunal shall proceed
to decide them after allowing both parties to cross examine each other and the
deponents, whose affidavits have been filed by the parties, on such affidavits filed with
the application and the written statement and in doing so, it shall follow provision of
Order XIX of the Code of Civil Procedure, 1908 (5 of 1908). (2) The Claims Tribunal
may, if it appears to it to be necessary for just decision of the case, allow the parties to
adduce such further evidence as each of them may desire to produce:
Provided that no such further opportunity shall be permitted unless it is shown that
the affidavit of the witness sought to be examined at such stage could not be
obtained and filed earlier, despite exercise of due diligence by, or that such evidence
was not within the knowledge of the party relying on it.
15. Summoning of witnesses.- Subject to the provisions of rule 22, if an application is
presented by any party to the proceeding for the summoning of witnesses, the Claims
Tribunal shall, on payment of the expenses involved, if any, issue summons for the
appearance of such witness unless it considers that their appearance is not necessary for
a just decision of the case:
Provided that if, in the opinion of the Claims Tribunals, the party is financially poor,
it may not insist on the payment of the expenses involved and the same shall be
borne by the Government:
Provided further that in case where the party succeeds in whole or in part, the
expenses so incurred by the Government shall be directed to be paid to the
Government by the judgment debtor and so directed at time of passing of the final
award..
16. Method of recording evidence.- The Claims Tribunals shall, as examination of
witnesses proceeds, make brief memorandum of the substance of the evidence of each
witness and such memorandum shall be written and signed by the Presiding Judge of
the Claims Tribunal andshall form part of the evidence. Provided that evidence of any
expert witness shall be taken down, as nearly as may be, word for word.
17. Obtaining of supplementary information and documents.- The Claims Tribunal shall
obtain whatever supplementary information and documents, which may be found
necessary from the police, medical and other authorities and proceed to adjudicate upon
the claim whether the parties who were given notice appear or not on the appointed
date.
18. Judgment and award of compensation.- (1) The Claims Tribunal in passing orders
shall record concisely in a judgment, the findings on each of the issues framed and the
reasons for such findings and make an award specifying the amount of compensation to
be paid by the opposite party or parties and also the person or persons to whom
compensation shall be paid.
(2) The procedure of adjudicating the liability and award of compensation may be set
apart from the procedure of disbursement of compensation to the legal heirs in a case of
death, and where the Claims Tribunal feels that the actual payment to the claimant is
likely to take some time because of the identification and determination of legal heirs of
the deceased, the Claims Tribunal may call for the amount of compensation awarded to
be deposited with it, and, then, proceed with the identification of the legal heirs for
disbursing payment of compensation to each of the legal heirs equitably.
(3) Where the Claims Tribunal finds that false or fabricated documents have been filed
by or relied upon by the Claimant(s) to support its claim for compensation, the Claims
Tribunal shall award costs of Rs.10,000 for every such false or fraudulent document
filed and further direct the police to launch a prosecution against such Claimant(s) in
accordance with the provisions of law.
CHAPTER 8- OTHER PROVISIONS
19. Prohibition against release of motor vehicle involved in accident.-(1) No court shall
release a motor vehicle involved in an accident resulting in death or bodily injury or
damage to property, when such vehicle is not covered by the policy of insurance against
third party risks taken in the name of registered owner or when the registered owner fails
to furnish copy of such insurance policy, at the time of seizure, despite demand by
investigating police officer, unless and until the registered owner furnishes sufficient
security to the satisfaction of the court to pay compensation that may be awarded in a

claim case arising out of such accident. Where the owner does not furnish such a copy
of the Insurance Policy at the time of seizure, but agrees to furnish it or so furnishes it at
a reasonable time thereafter, the release of the vehicle shall be subject to and only after
due verification of the said Insurance Policy/cover note by the Insurance Company
(2) Where the motor vehicle is not covered by a policy of insurance against third party
risks, or when registered owner of the motor vehicle fails to furnish copy of such policy
in circumstance mentioned in sub-rule (1), the motor vehicle shall be sold off in public
auction by the magistrate having jurisdiction over the area where accident occurred, on
expiry of three months of the vehicle being taken in possession by the investigating
police officer, and proceeds thereof shall be deposited with the Claims Tribunal having
jurisdiction over the area in question, within fifteen days for purpose of satisfying the
compensation that may have been awarded, or may be awarded in a claim case arising
out of such accident.
20. Presumption about reports.- The contents of reports submitted to the Claims Tribunal
in Form “A” and Form “D” by investigating police officer and concerned registering
authority respectively, and confirmation under clause (b) of rule 5 by the insurance
company shall be presumed to be correct, and shall be read in evidence without formal
proof, till proved to the contrary.
21. Transfer of claim cases.- (1) Where two or more claims, arising out of the same cause
of action, fall within the jurisdiction of the District Judge, he shall have the power to
transfer an application for claim from the file of one Claims Tribunal, before whom the
application is pending, to any other Claims Tribunal, if-
(a) the Claims Tribunal before whom the application is pending makes
such a request on grounds, personal or otherwise; or
(b) upon consideration of the application for transfer by any party to the
application, the District Judge is satisfied, for reasons to be recorded in
writing, that there are sufficient grounds to do so.
(2) Where two or more claims arising out of the same cause of action, are pending
before different Claims Tribunal in the same State, the High Court of such State may
transfer the application from the file of one Claims Tribunal to the other Claims Tribunal
for any sufficient reasons, on the application of any party to such proceedings..
(3) Where two or more claims arise before different Claims Tribunals in different States
then an application will lie to either of the High Courts of the two states and such High
Court may transfer the application from the file of one Claims Tribunal to the other
Claims Tribunal for any sufficient reasons.
(4) While considering an application for transfer of a claim, the Claims Tribunal
which has first issued notice in point of time shall be deemed to be the appropriate
Claims Tribunal for the purpose of such transfer. .
22. Inspection of the vehicle.- The Claims Tribunal may, if it thinks fit, require the motor
vehicle involved in the accident to be produced by the owner for inspection at a
particular time and place to be mentioned by it, in consultation with the owner.
23. Power of summary examination.- The Claims Tribunal during the local inspection or
at any other time at a formal hearing of a case pending before, it may, examine
summarily any person likely to be able to give information relating to such case,
whether such person has been or is to be called as a witness in the case or not and
whether any or all of the parties are present or not.
24. Power to direct medical examination.- The Claims Tribunal may, if it considers
necessary, direct, in Form “J”, any medical officer or any board of medical officers in a
government or municipal hospital to examine the injured and issue certificate
indicating the degree and extent of the disability, if any, suffered as a result of the
accident, and it shall be the duty of such medical officer or board to submit the report
within fifteen days of receipt of direction.
25. Securing the interest of claimants.- (1) Where any lump-sum amount deposited with
the Claims Tribunal is payable to a woman or a person under legal disability, such sum
may be invested, applied or otherwise dealt with for the benefit of the woman or such
person during this disability in such manner as the Claims Tribunal may direct to be

paid to any dependent of the injured or heirs of the deceased or to any other person
whom the Claims Tribunal thinks best fitted to provide for the welfare of the injured or
the heir of the deceased.
(2) Where on application made to the Claims Tribunal in this behalf or otherwise, the
Claims Tribunal is satisfied that on account of neglect of the children on the part of the
parents, or on account of the variation of the circumstances of any dependent, or for any
other sufficient cause, an order of the Claims Tribunal as to the distribution of any sum
paid as compensation or as to the manner in which any sum payable to any such
dependent is to be invested applied or otherwise dealt with, ought to be varied, the
Claims Tribunal may make such further orders for the variation of the former order as it
thinks just in the circumstances of the case.
(3) The Claims Tribunal shall, in the case of minor, order that amount of compensation
awarded to such minor be invested in fixed deposits till such minor attains majority. The
expenses incurred by the guardian or the next friend may be allowed to be withdrawn
by such guardian or the next friend from such deposits before it is deposited.
(4)The Claims Tribunal shall, in the case of illiterate claimants, order that the amount of
compensation awarded be invested in fixed deposits for a minimum period of three
years, but if any amount is required for effecting purchase of any moveable or
immoveable property for improving the income of the claimant, the Claims Tribunal
may consider such a request after being satisfied that the amount would be actually
spent for the purpose and the demand is not a ruse to withdraw money.
(5)The Claims Tribunal shall, in the case of semi-literate person resort to the procedure
for the deposit of award amounts set out in sub-rule(4) unless it is satisfied, for reasons to
be recorded in writing that the whole or part of the amount is required for the expansion
of any existing business or for the purchase of some property as specified and
mentioned, in sub-rule (4) in which case the Claims Tribunal shall ensure that the
amount is invested for the purpose for which it is prayed for and paid.
(6) The Claims Tribunal may in the case of literate persons also resort to the procedure
for deposit of awarded amount specified in sub-rule (4) and (5) if having regard to the
age, fiscal background and state of society to which the claimant belongs and such other
consideration, the Claims Tribunal in the larger interest of the claimant and with a view
to ensuring the safety of the compensation awarded, thinks it necessary to order.
(7)The Claims Tribunal, may in personal injury cases, if further treatment is necessary,
on being satisfied which shall be recorded in writing, permit the withdrawal of such
amount as is necessary for the expenses of such treatment.
(8)The Claims Tribunal shall, in the matter of investment of money, have regard to a
maximum return by ways of periodical income to the claimant and make it deposited
with public sector undertakings of the State or Central Government which offers higher
rate of interest. (9) The Claims Tribunal shall, in investing money, direct that the interest
on the deposits be paid directly to the claimants or the guardian of the minor claimants
by the institutions holding the deposits under intimation to the Claims Tribunal.
26. Adjournment of hearing.- If the Claims Tribunal finds that an application cannot be
disposed of at one hearing, it shall record the reasons which necessitate the adjournment
and also inform the parties present of the date of adjourned hearing.
27. Enforcement of award of the Claims Tribunal.- Subject to the provisions of section
174 of the Act, the Claims Tribunal shall, for the purpose of enforcement of its award,
have all the powers of a Civil Court in the execution of a decree under the Code of Civil
Procedure, 1908(5 of 1908), as if the award where a decree for the payment of money
passed by such court in a civil suit.
28. Vesting of powers of Civil Court in the Claims Tribunal.- Without prejudice to the
provisions of section 169 of the Act every Claims Tribunal shall exercise all the powers
of a Civil Court, and in doing so for discharging its functions it shall follow the
procedure laid down in the Code of Civil Procedure, 1908(5 of 1908).
29. Receipt of compensation paid upon payment.- The Claims Tribunal shall, obtain a
receipt from the claimant in duplicate, one copy to be issued to the person who makes
the payment and the other to be retained on the record while handing over the payment.

30. Registers.- (1) The Claims Tribunal shall maintain in addition to all registers required to
be maintained by a court of Additional District Judge in Delhi, the following registers:-
(i) Register of intimation of factum of accident (ii) Register for applications for interim
award on principle of no fault liability; (iii) Register for deposit of payments in the
Tribunal through cheques, etc.
(2) Claim petitions on the ground of death, permanent disability, injury and damage to
property shall be entered in a separate register.
31. Custody and preservation of the records.- The necessary documents and records
relating to the cases shall be preserved in the record room for a period of six years of the
satisfaction of the award, if any granted, or for a period of twelve years after the
judgment and award become final, whichever is earlier.
CHAPTER 9 – APPEAL
32. Appeal against the judgment of the Claims Tribunal.-(1) Subject to the provisions of
Section 173, every appeal against the judgment of the Claims Tribunal shall be preferred
in the form of a memorandum signed by the applicant or the advocate duly empowered
by him in this behalf, and presented to the High Court and shall be accompanied by a
copy of the judgment.
(2) The memorandum shall set forth concisely and under distinct heads, the grounds
of objections to the judgment appealed from without any argument or narrative, and
such grounds shall be numbered consecutively.
(3) Save as provided in sub-rules (1) and (2) , the provisions of Order XLI XXI in the
First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall mutatis mutandis
apply to appeals preferred to High Court under section 173 of the Act.
33. Certified copies.- The rules relating to the issue of certified copy as in force in Delhi for
the courts subordinate to the High court shall mutatis mutandis apply in the case of the
Claims Tribunal.

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