Page 92 - Motor Insurance Ebook IC 72

The Insurance Times

Advantages of Lok Adalat Settlements: - Settlement of
T.P. Claims in the Lok Adalat is advantageous to
insurance companies for the following reasons:
a) The insurers get an opportunity to clear up a large

backlog of motor claims cases;
b) The claim is deemed have been settled once and

for all and there is no further litigation by way of
appeal to the higher Courts;
c) Speedy settlement gives satisfaction to third party
as well as to the insured.
d) Serves as a means of good publicity, good name
and prestige to the insurance company.

Q18 . "Jald Rahat Yojana is an unique Pre-litigation
Scheme for settlement of Third Party Motor
Insurance Claims". Discuss.

Ans. Nature of Jald Rahat Yojana - The Jald Rahat Yojana
came into with effect from 14 th March. 1992. This is a
Pre-litigation Scheme for settlement of Third Party
Motor Insurance Claims for motor accident victims.

It provides quick payment of compensation to victims
of road accidents without their adopting legal
proceedings. In Lok Adalat only cases pending before
MACT are taken up for compromise settlement,
whereas under the Jalad Rahat Yojana injured persons

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