📷 Image: Wikimedia Commons / Vivien Hughes
Automobile
Motor Accident Victims Can Now Receive Compensation via Any Nationalised Bank Account
✍️ Live Law
🗓 30 Oct 2026, 06:24 PM
👁 12
The new rule allows claimants of motor accident compensation to have payments deposited directly into any nationalised bank account, eliminating the need to open a separate union account.
The Motor Accident Claims Tribunal has issued an amendment that widens the options for victims to receive their compensation. Under the revised guideline, any claimant can have the awarded amount credited to any account held with a nationalised bank, such as SBI, PNB or Bank of Baroda.
Previously, claimants were required to open a designated Union Bank account to facilitate the transfer, a step that often caused delays and added administrative burden. The change aims to streamline the disbursement process, ensuring faster relief for injured parties and their families.
Legal experts say the move aligns with broader efforts to simplify post‑accident settlements and reduce procedural bottlenecks. It also reflects the government's push to leverage the extensive network of nationalised banks for public welfare schemes.
The directive is expected to take effect immediately, with tribunals instructed to inform claimants of the new option during the settlement stage.
Stakeholders, including insurance firms and advocacy groups, have welcomed the simplification, noting that it will likely improve claimant satisfaction and reduce litigation over payment delays.
Previously, claimants were required to open a designated Union Bank account to facilitate the transfer, a step that often caused delays and added administrative burden. The change aims to streamline the disbursement process, ensuring faster relief for injured parties and their families.
Legal experts say the move aligns with broader efforts to simplify post‑accident settlements and reduce procedural bottlenecks. It also reflects the government's push to leverage the extensive network of nationalised banks for public welfare schemes.
The directive is expected to take effect immediately, with tribunals instructed to inform claimants of the new option during the settlement stage.
Stakeholders, including insurance firms and advocacy groups, have welcomed the simplification, noting that it will likely improve claimant satisfaction and reduce litigation over payment delays.