The Delhi High Court vide order dated 21st December, 2009 formulated Claims Tribunal Agreed Procedure for time-bound settlement of motor accident claims within 90 to 120 days. 

This new procedure came into force on 2nd April, 2010. 

The Claims Tribunal Agreed Procedure provides the following procedure:

1. 1. The police to carry out complete investigation and submit a Detailed Accident Report (DAR) to the Motor Accident Claims Tribunal within 30 days of the accident;
   2. The Insurance company to compute the compensation within 30 days thereafter and inform the Tribunal;
   3. If the amount offered by the Insurance Company is fair and acceptable to the claimant, it shall be paid within 30 days; and
   4. If the offer is not acceptable or the Tribunal finds that the offer is not fair, the Tribunal shall pass an award within 30 days, meaning thereby that the claimants shall get the award amount within 90 to 120 days of the accident.

The Supreme Court vide order dated 13th May 2016 directed all States to implement the Claims Tribunal Agreed Procedure formulated by Delhi High Court on 16th December, 2009 through the Motor Accident Claims Tribunals in coordination with the Legal Service Authorities as well as the Director General of Police of the respective States. The relevant part of the said order is reproduced hereunder:

“Insofar as the said suggestion is concerned, learned Solicitor General drew our attention to the response filed before us on behalf of the General Insurance Council, in particular paragraph 4, which states that presently the procedure suggested in Paragraph 23 is being followed by the Insurance Companies in Delhi by way of a Scheme called “Claims Tribunal Agreed Procedure” which was formulated by the Delhi High Court in the judgment dated 16.12.2009 passed in FAO No.843 of 2003 in Rajesh Tyagi & Ors. v. Jaibir Singh & Ors. It is also mentioned therein that Tribunal as well as the Legal Service Authority are taking effective steps to implement the said procedure, which is being carried out in the National Capital Territory of Delhi. In paragraph 5, it is further submitted that since this procedure has been successful in Delhi it can be extended on pan India basis. The agreed procedure has also been filed as Annexure R5 with the response filed on behalf of the General Insurance Council.

“We have also perused the procedure, which has been placed before us as Annexure R5 with the response which, in our view, appears to be a comprehensive one and that we can issue further directions to the Registrar General of the Delhi High Court to ensure that procedure is strictly followed insofar as Delhi is concerned and also circulate the said procedure to all the other High Courts and the Registrar General of all the other High Courts are directed to ensure that the said procedure is implemented through the Motor Accidents Claims Tribunals in coordination with the Legal Service Authorities as well as the Director General of Police of the States concerned.

The Registry of the Supreme Court is directed to forward a copy of this order along with Annexure R5 (pages 32 to 46 in the response filed on behalf of the General Insurance Council) to all the High Courts including the Delhi High Court to ensure compliance of the present order.”

This Order further modified the Claims Tribunal Agreed Procedure.

The Supreme Court modified its order dated 13th May, 2016 and directed all States to implement the Modified Claims Tribunal Agreed Procedure formulated by Delhi High Court on 12th December, 2014. The copy of the Modified Claims Tribunal Agreed Procedure was directed to be circulated to the Registrar General of each High Court for necessary compliance.

Vide order dated 01st May, 2018, the Delhi High Court formulated Motor Accident Claims Annuity Deposit Scheme (MACAD Scheme) for ensuring receipt of compensation in the safe hands of victims and/or kiths and kins of victims and for disbursement of compensation amount.

Vide order dated 07th December, 2018, the Delhi High Court directed 21 banks to appoint a nodal officer for implementation of MACAD Scheme.

Further, the court modified the Claims Tribunal Agreed Procedure to incorporate the directions contained in orders dated 15th December, 2017, 18th January, 2018, 09th March, 2018, 01st May, 2018, 20th July, 2018 and 07th September, 2018. The Modified Claims Tribunal Agreed Procedure (MCTAP) is part of the order dated 07th December, 2018.

The Supreme Court vide judgement dated 5th March, 2019 noted that there was no proper implementation of Claims Tribunal Agreed Procedure by the Claims Tribunals at all India level in terms of the directions of the Supreme Court in Jai Prakash Vs. M/S. National Insurance Co. (Supra). The Supreme Court directed NALSA should take up the matter and monitor the same in co-ordination and co-operation with the various High Courts. The Supreme Court directed the State Judicial Academies to sensitize the Presiding Officers of Claims Tribunal, Senior Police Officers of the State Police as well as Insurance Company for implementation of the Claims Tribunal Agreed Procedure. The Supreme Court also directed the Claims Tribunals in the entire country to implement MACAD Scheme contained in the order dated 7th December, 2018 of the Delhi High Court and directed the twenty one banks to implement the same on an all India basis.