Supreme Court Asks High Courts/Tribunals To Direct Transfer Of Compensation To Claimants' Bank Accounts

The Supreme Court in the case Parminder Singh Versus Honey Goyal And Others observed and has emphasized the need for the direct transfer of motor accident claim compensation to claimants' bank accounts in order to minimize the delays and also for ensuring timely payments.

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The bench comprising of Justice JK Maheshwari and Justice Rajesh Bindal was hearing the present matter.

The bench in the case observed that, 'The general practice which is followed by the insurance companies, where the compensation is not disputed, is to deposit the same before the Tribunal. However, a direction can always be issued to transfer the amount into the bank account(s) of the claimant(s) with intimation to the Tribunal.'

The bench in the case observed and has streamlined the process for the transfer of the claim amount to the claimant's bank account in relation to motor accident claim.

The bench stated that the claimants should provide bank account details at the initial stage of the claim process so that tribunals can issue directions for direct transfers after the passing of awards and for minors or cases which requires fixed deposits, the banks should ensure compliance and report to the Tribunal.