Online Dispute Resolution In The Motor Vehicle Act – A Critical Review

Abstract

This review provides a critical analysis of the integration of Online Dispute Resolution (ODR) within the Motor Vehicle Act, focusing on its potential to enhance efficiency in resolving motor vehicle-related disputes, particularly accidents and insurance claims. With traditional courts overburdened by motor vehicle disputes, ODR offers a streamlined, cost-effective alternative, utilizing advanced technologies such as artificial intelligence (AI) and blockchain to expedite dispute resolution. Empirical findings indicate that ODR can reduce case resolution time by up to 50%, while decreasing litigation costs by 30% compared to traditional methods. Case studies from the UK, USA, and Australia demonstrate successful ODR adoption, with a 40% reduction in court backlogs and an 80% satisfaction rate among users. However, challenges persist in the form of inconsistent legal frameworks, a significant digital divide especially in rural areas where 35% of the population lacks internet access and concerns over data security, with 25% of users expressing privacy concerns. This analysis highlights the necessity of legal reforms to standardize ODR procedures and ensure the enforceability of its outcomes. Additionally, the integration of AI for automated claim processing and blockchain for secure transactions promises to enhance transparency and fairness. Stakeholder impacts, including for vehicle owners, insurers, and legal practitioners, are examined, showing that ODR can reduce resolution times for insurance claims by 60%. While ODR holds immense potential, this study concludes that its widespread adoption under the Motor Vehicle Act requires targeted reforms in digital infrastructure, public awareness, and regulatory frameworks to fully realize its benefits.