Apex Court To Consider Issuing Directions For Cashless Treatment Of Road Accident Victims And Online Transfer Of Compensation

The Supreme Court, in an Order dated August 20, stated that it will consider issuing directives for the cashless treatment of road accident victims and the online transfer of compensation to them, as part of an ongoing public interest litigation (PIL) aimed at improving road safety and accident response.

The Bench of Justice Abhay S. Oka and Justice Augustine George Masih said, "Directions will have to be issued regarding accompaniments of Form III appended to the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, so that the General Insurance Corporation of India is able to make online transfer to the account of the persons held entitled to the compensation. The other issue which we have to consider is about cashless treatment to the victims of the road accidents."

The directions will focus on streamlining the process for compensating victims of road accidents, ensuring that the General Insurance Corporation of India can efficiently transfer compensation directly to the bank accounts of those entitled under the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022.

The Court noted the necessity of issuing directions regarding the accompaniment of Form III, which is integral to the compensation process under the scheme. The Bench is also expected to consider the introduction of a system for providing cashless treatment to road accident victims.

The Bench passed the order while hearing a PIL filed by S. Rajaseekaran, which seeks comprehensive measures from the Union Ministry of Road Transport to prevent road accidents and improve post-accident care.

The Apex Court had earlier mandated the formation of a steering committee to address various aspects of road safety, including the enforcement of Section 136A of the Motor Vehicles Act, which deals with the electronic monitoring and enforcement of road safety regulations.

In addition to cashless treatment and online compensation transfers, the Bench will also deliberate on establishing State and Central portals to facilitate the efficient payment of compensation to road accident victims. "For passing further orders on the above aspects, list on 27th August, 2024 at the end of the Cause List. For dealing with the issue of implementation of Section 136A of the Motor Vehicles Act, 1988 and for passing the orders thereon, list on 2nd September, 2024 at the end of the Cause List," the Court ordered. 

Cause Title: S. Rajaseekaran v. Union of India and Ors. 

Appearance:-

Amicus: Senior Advocate Gaurav Agrawal, AOR Ravi Raghunath

Petitioner: AOR Krishna Kumar

Respondent: Additional Solicitors General (ASG) KM Nataraj and Vikramjit Banerjee

Click here to read/download the Order