Hit-And-Run Cases : Provisions Giving Increased Compensation To Come Into Effect From April 1, 2022

The Central Government has notified that Section 161 of the Motor Vehicles Act, which provides for enhanced compensation for hit-and-run cases of deaths and injuries, will come into force from April 1, 2022. 

Section 161, as amended by the Motor Vehicles Act 2019, increased the compensation for death in hit-and-run cases from Rs 25,000 to Rs. 2 Lakhs; in cases of grievous injuries, the compensation was enhanced from Rs.12,500 to Rs 50,000. However, the said provision was not yet notified for coming into force.

On February 25, the Ministry of Road Transport and Highways issued a notification that the Section 50 of the Motor Vehicles (Amendment) Act 2019- which amended Section 161 of the Motor Vehicles Act 1988 - will come into force from April 1, 2022. It may be noted that the said notification also seeks to bring into effect other provisions of the 2019 Amendment Act in relation to third party insurance and claims process (for more, read this report).

The Ministry has also notified the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 and it shall come into force with effect from April 1, 2022.

"This scheme will supersede the earlier Solatium Scheme, 1989 from April 1, 2022, onwards," the Road Transport and Highways Ministry said in a release. The process of application for compensation and the release of payment to victims has also been made time bound, the release stated.

The Ministry has also published rules on February 25 regarding creation, operation, sources of fund etc. of the Motor Vehicles Accident Fund. "This fund shall be used for providing compensation in case of Hit & Run Accident, treatment for accident victims and any other purpose, as may be specified by the Union Government," the release stated. Under the scheme, the Ministry has come up with the procedure for detailed investigations of road accidents, Detailed Accident Report (DAR) and its reporting along with timelines for different stakeholders for quick settlements of claims

Click here to read the notification to operationalise provisions of MV Amendment Act 2019

Click here to read the notification on Compensation to Victims Of Hit and Run Motor Accidents Scheme 2022

Click here to read the notification on Motor Vehicles Accident Fund Rules 2022