Case Law Details
Bajaj Allianz General Insurance Company Private Ltd. vs. Union of India (Supreme Court)
We have perused the report dated 21.10.2021 submitted by Mr. Jayant K. Sud, learned Additional Solicitor General in compliance of our order dated 03.08.2021 and he has made certain suggestions. He has also sought directions from this Court. We consider it appropriate to issue the following directions:
i) A format for payment advised for remittance of compensation has been devised and followed in the Madras High Court and the Rajasthan High Court and the same is extracted from the judgment of the Madras High Court in Divisional Manager vs. Rajesh, 2016 SCC Online Mad. 1913, dated 11.03.2021. We thus direct that the same format will be followed across the country;
ii) A linked issue pointed out by Mr. N. Vijayaraghavan, learned Amicus Curiae is that the amounts deposited in the Tribunals are being credited in savings account with the result that there is accrued interest which keeps lying unattended. The suggestion is that the amount should be credited to a current account. We, however, do not agree with this solution but are of the view that the amounts should continue to be credited with the savings account to earn interest but we deem it appropriate to issue a general direction that where ever orders are passed for disbursement of compensation to the beneficiaries, any such interest would enure to the benefit of the beneficiaries and would follow the principal amount;
iii) In order to put the liability of the insurance company to an end, on deposit of the amount, the insurance company/depositor will communicate the factum of the deposit forthwith/expeditiously to the concerned Motor Vehicle Accident Claims Tribunal with a copy to the beneficiary;
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