M.R. Krishna Murthi v New India Assurance Co. Ltd.

Facts

• Case involved systemic delays in motor accident claim proceedings before MACTs
• Victims often waited years for compensation while insurers contested liability
• The question was whether mediation could be mandated to speed up compensation

Issue

1. Whether courts should mandate mediation in motor accident claims and what institutional framework is needed.

Held

• Motor accident claims are highly suitable for mediation (quantifiable amounts, insurance-backed, both parties have incentive to settle).
• Directed establishment of mediation centres in all districts for MACT matters.
• Courts should actively promote mediation in accident claims to ensure speedy compensation.
• Mediation reduces trauma for victims who would otherwise endure years of litigation.

Ratio Decidendi

Motor accident claims involve calculable damages, insurance coverage, and claimants who need urgent relief. Mediation provides faster compensation than contested proceedings. Courts must institutionalise mediation for this category.