Hit-and-run Deaths Compensation to Family Members Hiked to Rs. 2.00 Lakhs

From April 1, 2022, the immediate family members of victims in hit-and-run incidences will receive compensation of Rs. 2.00 Lakhs, which is an eight-fold increase from the current cap of Rs. 25,000. Any person grievously injured in a road crash will be given Rs. 50,000 solatium, which is four-fold increase from the current cap of Rs. 12,500.

Section 161 in the Motor Vehicles Act, 1988 (Which has been amended now)

Special provisions as to compensation in case of hit and run motor accident. —

(1) For the purposes of this section, section 162 and section 163—

(a) “grievous hurt” shall have the same meaning as in the Indian Penal Code, 1860 (45 of 1860);

 (b) “hit and run motor accident” means an accident arising out of the use of a motor vehicle or motor vehicles the identity whereof cannot be ascertained despite reasonable efforts for the purpose.

 (c) “scheme” means the scheme framed under section 163.

(2) Notwithstanding anything contained in the General Insurance Business (Nationalization) Act, 1972 (57 of 1972) or any other law for the time being in force or any instrument having the force of law, the General Insurance Corporation of India formed under section 9 of the said Act and the insurance companies for the time being carrying on general insurance business in India shall provide for paying in accordance with the provisions of this Act and the scheme, compensation in respect of the death of, or grievous hurt to, persons resulting from hit and run motor accidents.

(3) Subject to the provisions of this Act and the scheme, there shall be paid as compensation—

(a) in respect of the death of any person resulting from a hit and run motor accident, a fixed sum of [ twenty-five thousand rupees (Rs. 25,000.00/-]

 (b) in respect of grievous hurt to any person resulting from a hit and run motor accident, a fixed sum of [twelve thousand and five hundred rupees (Rs. 12,500/-)]

 (4) The provisions of sub-section (1) of section 166 shall apply for the purpose of making applications for compensation under this section as they apply for the purpose of making applications for compensation referred to in that sub-section

The HIT-AND-RUN case are those in which police are unable to identify the offending vehicles or its owners.

The Road Transport Ministry notified the Rules, which is set to ensure quick disbursal of compensation to the family members of victims. The Rules specify that the victims and their family members must get the compensation in less than three months and the payment should be transferred online.

As per notification, in other road crashes in which vehicle and its owner are traced, the immediate compensation will be Rs. 5.00 Lakhs for death and Rs. 2.50 lakhs from the grievous injury. It will be an option for the victims or their family members to accept the compensation or to approach the Motor Accident Claims Tribunal (MACT).

Those who accept this compensation can’t approach MACT for higher compensation. In this case the Insurance Company, which has been provided Third Party Coverage, will pay to the victims or family members.

The notification specifies that the government will set up a Motor Vehicle Accident Fund to ensure that there is no resource crunch while providing compensation or cashless treatment to road accident victims. The Cash-less treatment claim will be deducted from the final compensation amount.

Please Note That: If the hospital bill amount is more than the amount of compensation, in this case no compensation will be paid.

If the offending vehicle or owner is traced after the compensation has been paid, the insurance firm providing third party insurance to the vehicle, will reimbursed the total amount of compensation paid to the victims or family members of victims.

There will be three accounts under new proposed Motor Vehicle Accident Fund.

1. Account for insured vehicles.
2. Account for uninsured vehicles or Hit-and-run Motor Vehicles.
3. Hit and Run Compensation Account.

DISCLAIMER: The above details are only for information of readers. In case of necessity do consult with insurance consultants.