Railway Accidents and Untoward Incidents (Compensation) Amendment Rules, 2020
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
NOTIFICATION
New Delhi, the 3rd June, 2020
G.S.R. 347(E).In exercise of Powers conferred by section 129 of the Railways Act,1989 (24 of 1989), the Central Government hereby makes the following rules, further to amend the Railway Accidents and Untoward Incidents (Compensation) Rules, 1990, namely:-
1. Short title and commencement .- (1) These rules may be called the Railway Accidents and Untoward Incidents (Compensation) Amendment Rules, 2020.
(2) They shall be deemed to have come into force on the 1st day of January, 2020.
2. In the Railway Accidents and Untoward Incidents (Compensation) Rules, 1990, after rule 4, the following rule shall be inserted, namely: –
“5. MODE OF PAYMENT.
5.1 THE TRIBUNAL MAY, IN ORDER TO PROTECT THE SUM AWARDED TO THE CLAIMANT, HAVING DUE REGARD TO THE ILLITERACY OR OTHER DISABLING FACTORS IMPAIRING THE JUDICIOUS USE OF SUCH SUM, ISSUE DIRECTIONS FOR DISBURSING THE AWARD IN TERMS OF ANNUITIES, FIXED DEPOSITS OR OTHER SUITABLE MODE AS SHALL SUBSERVE JUSTICE.
5.2 If any of the claimants is a minor or person of unsound mind, the Tribunal may give liberty to the guardian ad litem to use the interest accruals on the deposit that shall be made during the minority for maintenance.
5.3 Nothing in this rule shall limit the power of the Tribunal to make modifications of the mode of disbursal for reasons to be stated in writing depending on the exigencies requiring liquidation of any corpus created for annuity or premature closure of fixed deposit, for the benefit of the claimant.
5.4 The orders dated 21st April, 2017, 24th May, 2019 and 06th November, 2019 of Hon’ble High Court of Delhi in FAO No. 22/2015 and CM Application No. 4501/2015 in Geeta Devi Vs Union Of India, relating to disbursement of compensation shall be read as part of this rule.
5.4.1 Examination of the Claimant(s) before passing of the award
(i) RCT shall, before or at the time of passing of the award, examine the claimant(s) to ascertain their financial condition/ needs, mode of disbursement and amount to be kept in fixed deposit.
(ii) Before disbursement of the award amount, the RCT shall direct the claimant(s) to open an individual savings bank account in a nationalised bank near the place of their permanent residence and the concerned bank be directed to not issue any cheque book(s) and/or debit card(s) to the claimant(s) and if the same have already been issued, the bank be directed to cancel the same and make an endorsement on the passbook of the claimant(s) to the effect that no cheque book and/or debit card shall be issued to the claimant(s) without the permission of the RCT. The concerned Bank of the claimant(s) be directed to permit the claimant(s) to withdraw money from his savings bank account by means of a withdrawal form only. The claimant(s) be directed to produce the copy of the order passed by the RCT before the concerned bank whereupon the bank be directed to make an endorsement on the passbook. The claimant(s) be directed to produce the passbook with the necessary endorsement as well as Aadhaar Card and PAN Card before the RCT on the next date fixed for compliance.
(iii) RCT shall take the following documents on record from the Claimant(s):
(a) Details of the Bank Account(s) of the Claimant(s) near the place of their residence with the necessary endorsement;
(b) Aadhaar Card and PAN Card or any other appropriate ID card; and
(c) Two sets of photographs and specimen signatures of the Claimant(s).
5.4.2 DEPOSIT OF THE AWARD AMOUNT
The RCT shall direct the Railways to deposit the amount awarded with the Registrar or RCT within a period of 30 days from the date of communication of the award. At the time of passing the award, RCT shall examine whether the Claimant(s) are entitled to exemption of deduction of TDS and if so, the Claimant(s) shall submit Form 15G or Form 15H (for senior citizen) to the Presenting Officer of the Railways (as applicable under sub-section (2) of section 19 of the Railway Claims Tribunal Act, 1987) so that no TDS is deducted.
5.4.3 PROTECTION OF THE AWARD AMOUNT
The RCT shall, depending upon the financial status and financial need of the Claimant(s), release such amount as may be considered necessary and direct the remaining amount to be kept in annuity or fixed deposit. For Example, in case of award of compensation of amount of Rs.5.5 lakhs:-
(i) Rs.50,000/- be released immediately and the balance Rs.5,00,000/- be kept in FDR for five years or such period as the RCT may consider appropriate, on which monthly interest be released to the claimant(s) by transferring the same to his savings bank account; or
(ii) Rs. 50,000/- may be released immediately and the remaining amount of Rs. 5,00,000/- may be kept in 50 fixed deposits of Rs. 10,000/- each, in the name of the Claimant(s), for the period of one month to 50 months respectively, with cumulative interest.
5.4.4 RCT shall impose the following conditions with respect to the fixed deposits
(a) The Bank shall not permit any joint name(s) to be added in the savings bank account or fixed deposit accounts of the Claimant(s) i.e. the savings bank account(s) of the Claimant(s) shall be an individual savings bank account(s) and not a joint account(s).
(b) The original fixed deposit shall be retained by the bank in safe custody. However, the statement containing FDR number, FDR amount, date of maturity and maturity amount shall be furnished by bank to the Claimant(s).
(c) The monthly interest be created by Electronic Clearing System (ECS) in the savings bank account of the Claimant(s) near the place of their residence.
(d) The maturity amounts of the FDR(s) be credited by Electronic Clearing System (ECS) in the savings bank account of the Claimant(s) near the place of their residence.
(e) No loan, advance, withdrawal or pre-mature discharge be allowed on the fixed deposits without permission of the RCT.
(f) The concerned bank shall not issue any cheque book and/or debit card to the Claimant(s). However, in case the debit card and/or cheque book have already been issued, bank shall cancel the same before the disbursement of the award amount. The bank shall freeze the account of the Claimant(s) so that no debit card be issued in respect of the account of the Claimant(s) from any other branch of the bank.
(g) The bank shall make an endorsement on the passbook of the Claimant(s) to the effect that no cheque book and/or debit card have been issued and shall not be issued without the permission of the RCT and Claimant(s) shall produce the passbook with the necessary endorsement before the RCT on the next date fixed for compliance.
(h) It is clarified that the endorsement made by the bank along with the duly signed and stamped by the bank official on the passbook(s)of the Claimant(s) is sufficient compliance of clause(g) above.
(k) The concerned Bank of the claimant(s) be directed to permit the claimant to withdraw money from his savings bank account by means of a withdrawal form only.
5.4.5 RCT SHALL FIX A DATE FOR REPORTING COMPLIANCE
(i) RCT shall fix a date for reporting compliance, preferably within 90 days of the award itself.
(ii) Railway shall place on record the proof of deposit of the award amount with up to date interest along with a calculation sheet.
(iii) Upon such proof being filed, RCT shall ensure that the interest up to the date of notice of deposit has been deposited by the Railways.