Page 89 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Q17. Explain the concept of Lok Adalat. What are
Ans. advantages of Lok Adalat Settlements from the
viewpoint of insurance companies?
Infact, the basic purpose of withdrawing the power of
Civil Court and establishment of an exclusive Tribunal
to adjudicate claims relating to payment of compensation
to the road accident victims was to ensure early
settlement without prolong litigation.

However, in course of time it was found that even such
exclusive Tribunals unable to cope with the ever-
increasing number of such claims. This resulted in huge
back-log and pendency of cases for years together.

With a view to provide timely relief to a road accident
victims by way of settlement of such cases out of court,
Sri P. N. Bhagwati, former Chief Justice of India,
conceived a unique concept known as Lok Adalat or
Lok Nyayalaya.

The basic objective of the same is to encourage
settlement of claims across the table, by way of
conciliation and negotiation, at Lok Adalat, in the
presence of the parties to the litigation.

While it enabled the claimant to received the

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