EMIs, no full cash for accident victims: HC
Sureshkumar.K@timesgroup.com
Chennai:15.08.2019
Victims of motor vehicle accidents in Tamil Nadu will no longer get lump-sum compensation from insurance companies as the Madras high court has ordered implementation of Motor Accident Claims Annuity Deposit Scheme (MACAD) from October 1. As per the scheme, compensation awarded to victims will be deposited in banks and disbursed to them in Equated Monthly Installments (EMIs) for a fixed term. No loan, advance or full withdrawal will be allowed on the deposits made out of award amounts without the permission of the court.
Justice P N Prakash, referring to the scheme proposed by the Supreme Court through an order issued on March 5, said it would ensure that the victims would have total control over the compensation and that they would not have to suffer any ‘leakage’.
As per the scheme, a savings bank account would be opened in the names of the victims in a nationalized bank near their houses and the compensation would be deposited for a fixed term. Every month, the victims would get a fixed sum of the principal and interest.
Ex-judge to check duplicate claims
The bank will not permit any joint names to be added in the savings bank account of the victims, nor cheque book or debit card facility will be provided. Justice Prakash was passing the order on a plea moved by Cholamandalam MS General Insurance Company Limited to check double claims made in different tribunals for the same accident, in collusion with police and advocates. Winding up the hearing, the judge said: “The implementation of MACAD Scheme shall be on and from October 1 for practical and realistic reasons. There shall be no exception made to this MACAD Scheme compliance, even in claims which are settled by way of compromise by Alternate Dispute Resolution mode, be it in Lok Adalat or Mediation dispensations, except as may be provided for in the Scheme itself, for reasons to be recorded in writing by the Claims Tribunals.”
During the course of hearing, the court appointed former judge of the high court, Justice K Chandru, to examine if duplicate claims in respect of the same accident were a widespread phenomenon in the state and, if so, to ascertain whether such case briefs were sold to counsel for monetary consideration.
After steps taken by the expert committee, 276 motor accident claim petitions worth ₹48.22 crore stood withdrawn across the state.
Sureshkumar.K@timesgroup.com
Chennai:15.08.2019
Victims of motor vehicle accidents in Tamil Nadu will no longer get lump-sum compensation from insurance companies as the Madras high court has ordered implementation of Motor Accident Claims Annuity Deposit Scheme (MACAD) from October 1. As per the scheme, compensation awarded to victims will be deposited in banks and disbursed to them in Equated Monthly Installments (EMIs) for a fixed term. No loan, advance or full withdrawal will be allowed on the deposits made out of award amounts without the permission of the court.
Justice P N Prakash, referring to the scheme proposed by the Supreme Court through an order issued on March 5, said it would ensure that the victims would have total control over the compensation and that they would not have to suffer any ‘leakage’.
As per the scheme, a savings bank account would be opened in the names of the victims in a nationalized bank near their houses and the compensation would be deposited for a fixed term. Every month, the victims would get a fixed sum of the principal and interest.
Ex-judge to check duplicate claims
The bank will not permit any joint names to be added in the savings bank account of the victims, nor cheque book or debit card facility will be provided. Justice Prakash was passing the order on a plea moved by Cholamandalam MS General Insurance Company Limited to check double claims made in different tribunals for the same accident, in collusion with police and advocates. Winding up the hearing, the judge said: “The implementation of MACAD Scheme shall be on and from October 1 for practical and realistic reasons. There shall be no exception made to this MACAD Scheme compliance, even in claims which are settled by way of compromise by Alternate Dispute Resolution mode, be it in Lok Adalat or Mediation dispensations, except as may be provided for in the Scheme itself, for reasons to be recorded in writing by the Claims Tribunals.”
During the course of hearing, the court appointed former judge of the high court, Justice K Chandru, to examine if duplicate claims in respect of the same accident were a widespread phenomenon in the state and, if so, to ascertain whether such case briefs were sold to counsel for monetary consideration.
After steps taken by the expert committee, 276 motor accident claim petitions worth ₹48.22 crore stood withdrawn across the state.
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