The Role Of Mediation And Lok Adalats In Claims Settlement In Cases Of Motor Vehicle Accidents

Advocate Tirathraj Singh Sodha, Rajasthan High Court, Jodhpur

ABSTRACT

Motor vehicle accidents are a significant concern in India, resulting in numerous disputes and claims for compensation. Traditionally, these disputes are resolved through litigation in the court system, which often involves lengthy processes, high costs, and significant emotional stress for all parties involved. In recent years, there has been a growing emphasis on alternative dispute resolution (ADR) mechanisms, particularly mediation and Lok Adalats, as effective tools for settling motor vehicle accident claims. This article examines the increasing significance of these methods in the Indian legal landscape.

Mediation offers a flexible, voluntary, and confidential platform where disputing parties, such as accident victims and insurance companies, can negotiate mutually agreeable settlements with the assistance of a neutral mediator. It has proven to be a cost-effective, efficient, and less adversarial alternative to court litigation. Lok Adalats, on the other hand, are statutory bodies established under the Legal Services Authorities Act, 1987, which provide an accessible, informal, and expedited forum for resolving disputes, including motor vehicle accident claims, at the district, state, and national levels. Both mechanisms reduce the burden on conventional courts, ensuring quicker resolution and fair compensation for victims.

Recent judgments by the Supreme Court and various High Courts have emphasized the importance of these ADR mechanisms. The judiciary has recognized the need to promote mediation and Lok Adalats to ensure speedy justice and to manage the increasing backlog of cases in courts. Notable judgments, such as "Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (P) Ltd." (2010) and "MR Krishna Murthi v. New India Assurance Co. Ltd." (2019), illustrate the judiciary’s support for these methods. Additionally, Lok Adalats have had a profound impact on the insurance sector, encouraging fair practices, reducing litigation costs, and promoting transparency in claim settlements.