Purvi, a young professional working with a Payroll processing company in Chennai, faced a life-altering event when her car collided with a speeding vehicle at an intersection. The impact left her with severe injuries, in

CS Professional · Arbitration, Mediation and Conciliation · PYQS · December 2024
Purvi, a young professional working with a Payroll processing company in Chennai, faced a life-altering event when her car collided with a speeding vehicle at an intersection. The impact left her with severe injuries, including multiple fractures and trauma. Amidst physical pain and emotional turmoil, Purvi sought assistance from her insurance company, only to find herself entangled in a claim dispute. The aftermath of the accident presented Purvi with daunting challenges. Mounting medical bills and the inability to work aggravated her distress. However, her insurance policy coverage became a source of contention when the insurance company disputed the extent of her injuries and the liability of the other party involved in the accident. Having no other alternative, Purvi wanted to appeal against the insurance company, though she knew that the litigation would be costly for her. The insurance company also noticed that the large number of accidents and related claims cast burden on it and the legal system, if they result in litigation. With reference to a judicial pronouncement, advise the insurance company about the alternate dispute resolution mechanism it should consider.

Answer & Explanation:

In the case of M.R. Krishna Murthi v. New India Assurance Co. Ltd. [(2020) 15 SCC 493, (India), 27] which is relating to justice for road accident victims. It was inter alia mentioned that having regard to the fact that large number of accidents are giving rise to phenomenal quantum jump in such cases, methods need to be adopted for quick resolution. Here, mediation as a concept of dispute resolution, even before dispute becomes part of adversarial adjudicatory process, would be of great significance. Advantages of mediation are manifold. These stands recognised by the Legislature as well as policy makers and need no elaboration. Mediation is here to stay. It is here to evolve. It is because of the advantages of mediation as a method here to find new grounds. It is here to prosper, as its time has come. It is now finding statutory recognition and has been introduced in few Statutes as well. Examples are the Companies Act, Insolvency and Bankruptcy Code, Commercial Courts Act etc. In these enactments provisions are made even for pre-litigation mediation by making this process mandatory. There is, in any case, umbrella provisions in the form of Section 89 of the Code of Civil Procedure which, inter alia, provides for court annexed mediation as well. In view of the decision in above mentioned case, the Insurance Company may opt for mediation.

Topics: Alternate Dispute Resolution

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