A startling revelation has come to light through a response to an RTI (Right to Information) query, highlighting the alarming number of pending motor accident claims across the country. According to the information provided by the Insurance Regulatory and Development Authority of India (IRDAI), a staggering 10,46,163 motor accident claims, amounting to a colossal sum of INR 80,455 crore, remain unresolved nationwide.
The data, furnished in response to a query filed by Supreme Court advocate K.C. Jain in April, paints a grim picture of the mounting backlog of claims. Notably, the number of pending claims has witnessed a consistent upward trend between the financial years 2018-19 and 2022-23.
Breaking down the figures, the IRDAI’s information reveals that at the end of the financial years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23, the number of outstanding motor accident claims stood at 9,09,166, 9,39,160, 10,08,332, 10,39,323, and 10,46,163, respectively. The corresponding claim amounts for these years were INR 52,713 crore, INR 61,051 crore, INR 70,722 crore, INR 74,718 crore, and INR 80,455 crore.
However, the IRDAI stated that district-wise and state-wise details of motor third-party claims are not maintained or collected by the regulatory body, as such granular information is not within its purview.
Expressing concern over the escalating backlog, Agra-based lawyer K.C. Jain highlighted the increasing delays in claim settlements, which directly impact the dependents of deceased individuals and those injured in road accidents. As a road safety activist, he raised alarms over the “snail pace” of claim resolutions, estimating that it takes an average of four years for a victim to receive financial relief.
“If we look at the pace of claim settlements, the number of pending cases at the beginning of the financial year 2022-23 was 10,39,323, and the number of new claims received this year was 4,54,944. Thus, the total number of pending claims was 14,94,267, out of which only 4,48,104 cases were settled, which was only 29 per cent of the total cases. Therefore, on average, it is estimated that it takes four years to decide a claim,” Jain explained.
In response to the inordinate delays in adjudicating motor accident claims, Jain revealed that he has filed an interlocutory application in the Supreme Court under a writ petition (civil). The application demands the formulation of an interim payment scheme by the central government under Section 164A of the Motor Vehicles Act. This scheme would aim to provide relief to victims by facilitating interim payments.
“It is suggested that this amount be at least INR 5,00,000 for fatal cases and INR 2,50,000 for injury cases, as per the no-fault liability under Section 164 of the MV Act,” Jain added, emphasising the need for a swift and effective mechanism to address the mounting backlog and provide timely assistance to those affected by motor accidents.