India's Supreme Court mandates direct aid transfer to accident victims

The Supreme Court of India has made an important decision to help victims of motor accidents receive compensation more quickly. The court ruled that compensation should be directly transferred to the bank accounts of victims instead of first going to Motor Accident Claims Tribunals. This change aims to reduce delays and make the process easier for both insurance companies and claimants. The justices observed that the current process of withdrawing funds from tribunals takes time and involves many steps. They highlighted that many victims are often unaware of court orders regarding their compensation, leading to further delays. To address this issue, the court emphasized the need for a simpler procedure that involves direct payments to claimants. The ruling comes at a time when there are over a million motor accident claims pending in India. Between 2018 and 2022, the country experienced over 2.2 million accidents, resulting in many fatalities and injuries. This decision is expected to help speed up the resolution of claims and provide relief to victims and their families. In a specific case, the court increased a claimant's compensation from ₹15.25 lakh to ₹36.84 lakh and directed that this amount be directly credited to their bank account. The judges noted that advancements in technology, like digital banking, support this new method of payment. They also referred to previous court rulings that mandated direct bank transfers in similar cases, indicating a clear need for this reform. To ensure all courts and tribunals follow this new guideline, the court ordered that copies of the judgment be distributed to all high courts and relevant judicial bodies.