The Supreme Court has directed the Union Government to give wide publicity to the Compensation to Victims (Interim Relief) Scheme, 2026, framed under Section 164A of the Motor Vehicles Act, 1988, to ensure that road accident victims are aware of their right to seek interim compensation.

A bench of Justice JB Pardiwala and Justice KV Viswanathan also asked the Centre to clarify whether the scheme covers accidents involving uninsured vehicles, after the amicus curiae Senior Advocate Gaurav Agarwal and an applicant appearing in person pointed out that the scheme appeared to be confined to cases involving insured vehicles.

The Court directed the Union to ensure that the scheme is published in the Official Gazette at the earliest and to inform it by the next hearing how it proposes to make the scheme operational.

The directions were passed on October 16 while hearing contempt petitions alleging non-compliance with earlier orders concerning the implementation of statutory provisions and the publication of road accident data.

The Court noted that Section 164A of the Motor Vehicles Act empowers the Central Government to frame schemes for providing interim relief to claimants seeking compensation.

In an earlier order dated April 28, 2025, the Court had directed the Centre to frame a scheme under Section 164A as expeditiously as possible and, in any event, within four months. The Court had observed that although the provision came into force on April 1, 2022, it had remained unimplemented for three years.

During the October 16 hearing, Additional Solicitor General Vikramjit Banerjee informed the bench that the Ministry of Road Transport and Highways had framed the Compensation to Victims (Interim Relief) Scheme, 2026.

The bench examined Clause 6 of the scheme, which prescribes the procedure for claiming interim compensation. Under the procedure, a victim or the legal heirs of a deceased person can apply for interim compensation through a designated electronic portal, along with details of the compensation claim filed or pending before the Motor Accident Claims Tribunal.

The application is to be transmitted electronically to the Department of Financial Services in the Ministry of Finance and the investigating officer concerned. The Department of Financial Services is then required to forward it to the insurer of the vehicle involved in the accident.

The investigating officer must upload the Detailed Accident Report on the portal within 90 days of the accident. The insurance company is required to accept or reject the application, with reasons, within 30 days of the report being uploaded.

Where the insurer accepts liability, payment must be made before the Claims Tribunal within 30 days of acceptance.

However, the amicus curiae, Senior Advocate Gaurav Agrawal, and the applicant pointed out that the scheme appeared to cover only claims involving insured vehicles. They submitted that it did not address cases involving uninsured vehicles, where the driver could be liable to pay compensation.

Taking note of the concern, the bench asked the ASG to obtain instructions on whether the scheme would also cover uninsured vehicles.

The Court emphasised the need to make the scheme widely known, observing that an ordinary citizen might not become aware of the right to seek interim compensation unless the government took steps to publicise it.

The bench further held that the scheme, having been framed under Section 164A of the Motor Vehicles Act, is a statutory scheme covered by Section 212 of the Act, which deals with the publication and commencement of rules and notifications. It accordingly directed the Union to ensure its publication in the Official Gazette at the earliest.

Suggestions on implementation

The applicant also suggested measures to improve the implementation of the scheme and the broader motor accident compensation system.

These included directing the Ministry of Road Transport and Highways to collect and publish district-wise data on pending compensation claims before Motor Accident Claims Tribunals, appeals pending before High Courts, recovery proceedings and compensation awards that remain unsatisfied.

The applicant further suggested that States and Union Territories provide the relevant information to the Ministry quarterly, enabling it to publish consolidated district-wise, State-wise and national statistics. Such data, the applicant submitted, would help identify bottlenecks and ensure that compensation reaches victims and their dependents without delay.

Another suggestion concerned providing adequate infrastructure to Motor Accident Claims Tribunals, including presiding officers, supporting staff, courtrooms and digital facilities, in consultation with the respective High Courts.

The applicant highlighted Uttar Pradesh as a State where compensation claims reportedly take more than five years on average to be decided, amid infrastructural constraints faced by the Tribunals.

The Supreme Court asked the Union to examine these suggestions and respond by the next hearing.

Separate contempt petition on road accident reports

In a separate contempt petition, the bench issued notice to the Union Government over alleged non-compliance with its April 17, 2025 order directing the Ministry of Road Transport and Highways to publish the annual report on road accidents for 2023 by the end of August 2025.

The earlier order had also directed the Ministry to publish such annual reports within six months of the end of every calendar year, observing that their utility depended on timely publication.

The Court asked the Union to explain why the direction had not been complied with and what steps it proposed to take.

The contempt petitions and connected applications have been listed for further hearing on November 25, 2026.