Referring to the judiciary’s latest directive that road accident cases must go through court- annexed mediation before a trial date is fixed, they said the process could speed up settlements and ease court backlogs, but cash-strapped victims may be at a disadvantage when negotiating with insurers.
This is particularly so if they are struggling with medical bills and loss of income.
Lawyer Datuk N. Sivananthan said the court-annexed mediation was a positive step towards resolving civil claims more quickly, particularly in cases where liability was not disputed.
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He said civil claims were often brought against insurance companies, which appointed lawyers to handle the cases, and the process could be lengthy.
“The issue of liability is not really contingent on the criminal prosecution because that is a separate matter.
“It is for the insurance, during mediation, to decide whether they are accepting full liability or otherwise,” he said.
A directive issued by Chief Justice Tun Wan Ahmad Farid Wan Salleh stated that court-annexed mediation proceedings would apply in the High Courts and subordinate courts from Oct 1.
This initiative aims to seek the settlement of civil disputes through mediation in a move to resolve disputes more quickly and clear the backlog of cases awaiting trial.
Sivananthan explained that mediation could expedite claims regardless of whether an accident resulted in injuries or death, provided liability was not disputed.
“But where there is an issue as to who is at fault, then unless both parties can come to a compromise, the mediation is not going to succeed, and the case will proceed to trial,” he said.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr Saravanan Thambirajah said mediation could help accident victims receive compensation earlier while reducing legal costs.
However, he cautioned that victims could be at a disadvantage when negotiating with insurance companies, which have legal teams, financial resources and experience in handling claims.
He said the process must protect vulnerable people from having to choose between immediate financial needs and fair compensation.
“Financially desperate victims may feel compelled to accept lower settlements simply because they cannot afford to wait.”
The judiciary, he said, should establish clear safeguards to protect the independence, impartiality and transparency of the mediation process.
Fomca, he said, is also calling for an independent and impartial mediation process, free from conflicts of interest or influence from insurance companies and other interested parties.
It proposed that recognised consumer associations, victims’ rights organisations and other independent public-interest groups be given a role in providing independent advice, supporting vulnerable victims and monitoring fairness.
“Most importantly, victims must retain their right to pursue their claims through the courts if mediation fails or the proposed compensation is inadequate.”
He said there must also be periodic independent reviews of mediation outcomes, including settlement amounts, time taken to resolve cases and complaints involving unfair practices, while protecting the confidentiality of individual cases.
“We must remember that behind every road accident claim is a person or family whose livelihood, health and future may have been seriously affected,” he said.
