Home Insights  > Supreme Court Advocates Enhanced Compensation Awareness in Hit & Run Cases

Date: 30 January 2024

Share :

Introduction

The Supreme Court has recently issued important guidelines in S Rajaseekaran v. Union of India and others , to guarantee that victims of hit-and-run accidents are aware of the Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022. In particular, the court focused on situations where the police identified an incident as a hit-and-run accident and stressed the importance of providing victims or their legal representatives with prompt information and support. The guidelines further emphasize that police must notify victims or their attorneys about the existence of the compensation plan, in accordance with Section 161 of the Motor Vehicles Act, 1988. The First Accident Report (“FAR”), which contains the names of the victims and, if available, their legal representatives, must be submitted by the police by a certain date set by the court. These guidelines are intended to address the lack of knowledge among victims of the compensation plan’s existence and the requirement for a greater number of claims and settlements under the plan.

OBSERVATION MADE BY THE APEX COURT

Several directives have been issued by the Supreme Court to remedy the low number of requests for compensation under the Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022. The Court stressed the need to provide victims or their attorneys with prompt information and support, emphasizing the necessity to concentrate on situations in which the police classify an incident as a hit-and-run accident. The Central Government was also ordered by the court to examine and determine the adequacy of the existing compensation payments, which are Rs. 50,000 for injuries and Rs. 2 lakhs for death.  The court has mandated that if the police determine an accident to be a hit-and-run, they must promptly inform the concerned parties about the availability of the compensation scheme. Additionally, the court has established a timeline for the submission of the FAR by the police, which includes the names of victims and their legal representatives if available. These directives are aimed at addressing the low awareness among victims about the existence of the compensation scheme and the need for increased claims and settlements under the scheme.

The Central Government formulated the Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022, in compliance with Section 161 of the Motor Vehicles Act 1988. With effect from April 1, 2022, this policy offers compensation for road accidents resulting in death (up to Rs 2 lakh) and injury (up to Rs 50,000) in cases where the responsible vehicle cannot be identified.

Even though hit-and-run accidents are common in India, the Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022 has been implemented. Despite the large incidence of hit-and-run accidents, the plan, which offers compensation of Rs. 2 lakh for fatalities and Rs. 50,000 for injuries resulting from such accidents if the offending vehicle is not identified, has seen very few claims. The Court has set a deadline for the police to submit the FAR and has instructed the police to notify the victims or their attorneys about the availability of the compensation plan. The Court has also directed the central government to review and assess whether the current compensation amounts are adequate and to consider amending the Motor Vehicles Act. The Court’s decision was based on the low number of claims and settlements under the existing scheme, indicating a need for increased awareness and higher compensation for the victims of hit-and-run accidents.

The Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022 is a program that many victims are not aware of, according to the Supreme Court. In response, the Court has mandated that the police notify the victims or their legal counsel about this compensation plan’s availability in hit-and-run instances. The purpose of this regulation is to guarantee that individuals impacted by said incidents are informed of their right to receive compensation under the system.

DIRECTIONS FOR HIT-AND-RUN ACCIDENT COMPENSATION SCHEME

The officer in charge of the police station is required to notify the injured or the surviving family members of the deceased in writing about their right to compensation under the scheme if, at the time the accident report is registered by the jurisdictional police station, the details of the vehicle involved in the accident are not available, and if the police are unable to ascertain the vehicle’s particulars within one month of the accident report’s registration. The police will also give the wounded parties’ or the surviving relatives’ legal representatives’ contact information, including the jurisdictional claims, enquiry officer’s email address and office address, if applicable.

Within one month of the incident, the police station officer in charge must send the FAR to the Claims Enquiry Officer. In the event of injuries, the names of the victims and, if available, the names of the deceased’s attorneys should be included in this report. The Claims Enquiry Officer should notify the relevant District Legal Service Authority and ask them to get in touch with the claimants and help them submit their claim applications if the claim application is not received within a month of the FAR and other details being given to the Officer.

Every district level will see the creation of a Monitoring Committee, which will be made up of the District Legal Service Authority Secretary, the district’s claims investigator (or the state government’s designated claims investigator, if more than one), and a police officer nominated by the district superintendent of police who is at least a deputy superintendent of police. The Monitoring Committee will be convened by the Secretary of the District Legal Services Authority. To monitor the Scheme’s implementation in the district and guarantee adherence to the previously indicated guidelines, the Committee must meet at least once every two months.

After receiving the completed claim application, the Claims Enquiry Officer has one month to ensure that the Claim Settlement Commissioner receives a report with their recommendation and other supporting documentation.

RELAXATION OF LIMITATION PERIOD

The bench observed that the 2022 scheme does not specify a limitation period for filing claims. In contrast, the earlier Solatium Scheme stipulated a 6-month limitation period for submitting claims, which could be extended up to 12 months.

The Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022, has been ordered by the Supreme Court to be modified so that individuals who were eligible to apply under the previous Solatium Scheme can do so as a one-time measure within the extended timeframe. The Solatium Scheme allowed claims to be filed with a 6-month statute of limitations, which may be extended to a 12-month term. The court proposed that the Central Government take into consideration extending the deadline specified under sub-clause (2) of section 20 of the Solatium Scheme, citing the possibility that many victims may not be aware of their eligibility to apply under the scheme. The Central Government has been ordered by the Court to take this matter under consideration and render a suitable decision within eight weeks.

INCREASING COMPENSATION AMOUNT FOR HIT-AND-RUN VICTIMS

The bench recommended changing the compensation amounts for hit-and-run instances, which are currently set at Rs 2 lakh and Rs 50,000 for death and severe injuries, respectively. Over time, money loses its worth. We give the Central Government instructions to investigate the possibility of yearly, progressive increases in the compensation amounts. Within eight weeks from now, the Central Government will make a suitable conclusion on this matter, the bench declared.

The bench further instructed the Standing Committee to ensure that the initiative is implemented effectively and raise public knowledge of it. On April 22, 2024, the bench will examine the case again to ensure compliance.

CONCLUSION

To rectify the low rate of compensation awarded under the Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022, the Supreme Court has given important directions. In particular, the court focused on situations where the police identified an incident as a hit-and-run accident and stressed the importance of providing victims or their legal representatives with prompt information and support. The Central Government has been ordered by the Court to examine and determine whether the existing compensation levels are sufficient, as well as to contemplate modifying the Motor Vehicles Act. To account for the declining worth of money, the Court has also recommended that compensation amounts be increased on a regular basis. The Standing Committee has been directed to take effective steps to increase public awareness about the scheme and ensure its effective implementation. On April 22, 2024, the Supreme Court will assess compliance, which will be a major step in the direction of justice for hit-and-run victims.

For more information or queries, please email us at
[email protected]