Compensation to Victims of Hit and Run Motor Accident Scheme

Introduction

• Compensation to Victims of Hit and Run Motor Accident Scheme, 2022 is a monetary assistance scheme of Ministry of Road Transport and Highways.
• It was be launched on 1st Of April 2022.
• The scheme will supersede the Solatium Scheme 1989, which is the previous scheme governed by the Government of India for the payment of compensation to the victims of hit and run motor accident.
• Under Solatium Scheme 1989, the amount of compensation was Rs. 50,000/- for Death of a victim and Rs. 12,500/- in case of grievous hurt in hit and run cases.
• But Now under the Compensation to Victims of Hit and Run Motor Scheme, 2022, Ministry of Road Transport and Highways increased the previous compensation for death to Rs. 2,00,000/- and Rs. 50,000/- for grievous hurt.
• The comparison between old compensation scheme and new compensation scheme are as follows :-

  	Old Amount Of Monetary Assistance Under Solatium Scheme, 1989.	New Amount Of Monetary Assistance Under Compensation to Victims of Hit and Run Motor Accident Scheme, 2022.
  Death	Rs. 50,000/-	Rs. 2,00,000/-
  Grievous Hurt	Rs. 12,500/-	Rs. 50,000/-

• Not many people are aware about this compensation scheme of Central Government.
• In Section 161 of Motor Vehicle Act, there is a special provision as to compensation in case of hit and run motor accident.
• Recently Supreme Court gave a very hard statement on this Compensation to Victims of Hit an Run Motor Accident Scheme while observing very low turn out of claims under this scheme.
• Supreme Court said that it is the duty of Police Officers to let people aware about this compensation scheme at the time if any accident occurred.
• In case of any accident caused due to Hit and Run, victim or their legal representative can apply for compensation by filling Application Form of Compensation to Victims of Hit and Run Motor Accident Scheme.
• Claim Inquiry Officer will primarily verify the received claim applications and forwarded them to Claim Inquiry Commissioner for the disbursal of financial assistance.

Benefits of Scheme

• Government of India will provide the following benefits under section 161 of motor vehicle act to victims of hit and run under Compensation to Victims of Hit and Run Motor Accident Scheme :-
  • Financial Assistance will be provided in case of Death and Grievous Injury due to Hit and Run Accident.
  • Rs. 2,00,000/- will be provided in case of Death.
  • Rs. 50,000/- will be provided in case of Grievous Injury.

Procedure to Claim Compensation

• Applicant have to submit a duly filled Form I to seek Compensation under Central Government's Compensation to Victims of Hit and Run Motor Accident Scheme.
• Form shall be annexed with copy of claim raised by the hospital providing the treatment for cashless treatment payment.
• Undertaking mentioned in Form IV duly attached with application form.
• Any relevant document mentioned in Form I should be annexed with the application Form.
• Duly filled form with the requisite annexures should submitted to the Claim Enquiry Officer of the Sub-Division or Taluka in which the accident took place
• The Claim Enquiry Officer will scrutinised the documents and decide whether the compensation claim is true or not.
• Claim Enquiry Officer submit his report to the Claims Settlement Commissioner, as early as possible.
• If claim found to be right in nature, then within the 15 days of the sanction order, the amount of compensation would be transferred to the beneficiary account.

Procedure Followed by Claim Enquiry Officer

• Claim Enquiry Officer will accept the Claim Application Form of Compensation to Victims of Hit and Run Motor Accident Scheme.
• Claim Enquiry Officer first Obtain a First Accident Report, and Postmortem report (in case of death) form the concerned authorities.
• If there is more than 1 claimant, Claim Enquiry Officer shall decide the rightful claimant.
• From the date of receipt of the compensation claim application, claim enquiry officer should submit its report to the Claims Settlement Commissioner within the period of one month.
• If Claims Enquiry Commissioner returned the report of Claim Enquiry Officer for additional enquiry, then claim enquiry officer should re-enquire the claim and resubmit its report to the Claims Enquiry Commissioner within a period of 15 days.

Sanctioning Of Claim

• After receiving the report from Claim Enquiry Officer, Claims Settlement Commissioner has the right to sanction the claim under Compensation to Victims of Hit and Run Motor Accident Scheme.
• It is mandatory for the Claims Settlement Commissioner to sanction the claim as soon as possible but not exceeding the 15 days from the date of receipt of report.
• Claims Settlement Commissioner has right to deduct the amount of claim raised by the hospitals for treatment of the victim.
• If amount claimed by the hospital for treatment is more than that of the fixed compensation amount in the scheme, then in that case no amount will be paid to the claimant or legal representative of the deceased.
• If Claims Settlement Commissioner have doubt on report then he shall return the report to the Claim Enquiry Officer for re-enquiry.
• If the claim found to be rightful then claim settlement commissioner sanction the compensation amount and send his sanction order to General Insurance Council for final disbursal.

Payment Of Compensation

• The amount of compensation will be transferred in the bank account of beneficiary after the Claim under Compensation to Victims of Hit and Run Motor Accidents Scheme got approved.
• In case of death of victim, the amount of compensation i.e. Rs. 2,00,000/- will be paid to legal representative of the deceased.
• In case of grievous injury, the amount of compensation i.e. Rs. 50,000/- will be paid directly to the injured person.
• General Insurance Council will directly make an E payment to the bank account provided by the claimant or legal representative of the deceased.
• It is mandatory to make payment within the period of 15 days from the date of receipt of order.
• In case the payment is delayed due to any reason, the Claims Settlement Commissioner shall record the reason in writing.

Key Features of the Scheme

• Compensation amount shall administered from the Motor Vehicle Accident Fund constituted under the section 161 of Motor Vehicle Act.
• Motor Vehicle Accident Fund includes :-
  • Account for Insured Vehicle.
  • Account for Uninsured Vehicles.
• To monitor, review and administered the scheme there is a Standing Committee at the Centre Level.
• To monitor, to take corrective measures, to evaluate progress of the scheme there is a District Level Committee set up under this scheme.
• It is mandatory to pay the compensation within the 15 days of compensation sanction order.

Important Forms

• Form I. (Application Form of Compensation From Hit and Run Compensation Fund)
• Form II. (Claim Enquiry report to be submitted by the Claims Enquiry Officer
• Form III. (Order Of the Claims Settlement Commissioner)
• Form IV. (Undertaking For Refund Of Claim)

Important Links

• Ministry Of Road Transport and Highways.
• Compensation to Victims of Hit & Run Motor Accident, Scheme 2022.
• Motor Vehicles(Accident) Fund Rules, 2022.
• Motor Vehicle Act, 1988.
• Solatium Scheme, 1989.
• Parivahan Sewa Portal.

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