Motor Vehicles Act Section 149 — Settlement by insurance company and procedure therefor
CHAPTER IX MOTOR VEHICLES TEMPORARILY LEAVING OR VISITING INDIA
Civil
Summary
When the insurance company learns about an accident, either from the person making the claim, through an accident information report, or by any other means, it must appoint a specific officer to handle the settlement of claims related to that accident.
The officer chosen by the insurance company to process the compensation claim may make a settlement offer to the claimant. This offer must be made before the Claims Tribunal, include all necessary details, and be given within thirty days. The officer must also follow the procedure set by the Central Government.
If the claimant accepts the offer made under sub-section (2), two things happen. First, the Claims Tribunal will record the settlement, and the claim is then treated as settled by mutual consent. Second, the insurance company must make the payment within a maximum of thirty days from the date it receives the record of the settlement.
If the claimant rejects the offer, the Claims Tribunal will fix a date for a hearing to decide the claim on its merits.
Official Text
(1) The insurance company shall, upon receiving information of the accident, either from claimant or through accident information report or otherwise, designate an officer to settle the claims relating to such accident.
(2) An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before the Claims Tribunal giving such details, within thirty days and after following such procedure as may be prescribed by the Central Government.
(3) If, the claimant to whom the offer is made under sub-section (2),—
(a) accepts such offer,—
(i) the Claims Tribunal shall make a record of such settlement, and such claim shall be deemed to be settled by consent; and
(ii) the payment shall be made by the insurance company within a maximum period of thirty days from the date of receipt of such record of settlement;
(b) rejects such offer, a date of hearing shall be fixed by the Claims Tribunal to adjudicate such claim on merits.