Victim Compensation In Hit-And-Run Cases In India

Victim Compensation in hit and run cases in India

Victim compensation in hit-and-run cases is a crucial aspect of justice delivery.  Hit-and-run cases present unique challenges for law enforcement and the legal system, primarily because the offender’s identity is often unknown. 

In India, this is considered a serious offence under Section 106 (2) of Bharatiya Nyaya Sanhita, 2023 (“BNS”) which states that whoever causes the death of any person by rash and negligent driving of vehicle not amounting to culpable homicide and escapes without reporting it to a police officer or a Magistrate soon after the incident, shall be punished with imprisonment of either description of a term which may extend to ten years and shall also be liable to fine.

In the case of S Rajaseekaran v. Union of India and others, the Supreme Court emphasised that despite the availability of remedies to provide relief to hit-and-run accident victims, many people do not claim the monetary benefits due to a lack of awareness.

This article seeks to inform the rights of the victim involved in a hit-and-run accident and outlines the process for seeking compensation in the event of a hit-and-run incident along with significant legal precedents in this context. While compensation plays a key role in supporting victims and their families, it’s also important to consider the legal consequences of hit-and-run cases.

Right to Victim Compensation 

Victims of hit-and-run accidents face significant hardships, from loss of life to financial struggles. When the responsible vehicle is unidentified, victims cannot file for compensation through traditional channels like the Motor Accident Claims Tribunal (MACT). To address this, the Compensation to Victims of Hit and Run Motor Accidents Scheme-2022 provides support to such victims and their families.

Compensation for hit-and-run accidents was first introduced under the Motor Vehicles Act, of 1988, evolving to the current scheme that provides:

  • ₹2 lakh in case of death.
  • ₹50,000 in case of grievous injury.

The Motor Vehicles Act, of 1988 also introduced the “Golden Hour” scheme under Section 162, which ensures cashless treatment for accident victims within the first hour of the incident. However, the framework for cashless treatment is still being formalized.

While the compensation scheme provides monetary relief, it is important to distinguish it from other legal proceedings. In high-profile cases, such as the Salman Khan Hit-and-Run Case, the legal battle may also focus on culpability and punishment under different sections of the law. 

How to Claim Compensation Under the 2022 Scheme

To claim compensation under the 2022 scheme, victims or their legal representatives must:

  1. Filing a Claim:

A claim for compensation under the Hit and Run Compensation Scheme should be filed using Form-I of the Scheme and submitted to the Claims Enquiry Officer, which could be the Sub-Divisional Officer, Tehsildar, or any officer in charge of a revenue sub-division of a Taluka in the revenue district where the accident occurred. Form-I must be completed in all respects, signed by the claimant (injured victim or legal representative of the deceased victim), and must include bank account details under point 6. 

Along with Form-I, the claimant should also submit supporting claim documents such as a copy of the bank passbook, cashless treatment bill (if any), identification and address proof, the police FIR, post-mortem report in case of death, and either a death certificate or injury report, as applicable. 

  1. Investigation: 

The Claims Enquiry Officer will then investigate the claim and submit a report in Form-II to the Claims Settlement Commissioner within one month, ensuring the correctness of the FIR and identifying the rightful claimant.

  1. Settlement Process:

The Claims Settlement Commissioner, typically the District Magistrate, Deputy Commissioner, or Collector, will review the claim and, upon satisfaction, issue an order in Form-III within 15 days of receiving the Enquiry Report. If further investigation is needed, the Commissioner may request additional inquiries from the Claims Enquiry Officer, who must resubmit the report within 15 days. In case of grievous hurt, compensation is paid to the injured person. 

For accidents occurring after April 1, 2022, compensation is Rs. 2,00,000 for death and Rs. 50,000 for grievous hurt; for accidents before this date, the compensation follows the Solatium Fund Scheme, with Rs. 25,000 for death and Rs. 12,500 for grievous hurt. Any amount paid under Section 162 (Golden Hour Scheme – cashless treatment) of the Motor Vehicles Act, 1988, will be deducted from the Hit and Run compensation.

  1. Disbursement and Follow-up:

Once the Claims Settlement Commissioner verifies the claim, any amount already paid under the Golden Hour Scheme will be deducted from the final compensation. The remaining balance will be transferred directly to the claimant’s bank account via e-payment from the General Insurance (GI) Council. This process typically takes 15 days after receiving the sanction order.

If further documents or clarifications are required, the GI Council may request the district authorities to resolve any deficiencies. In cases where additional investigation is needed, the payment timeline can be extended by up to 30 days, with written reasons provided.

If the vehicle involved in the accident is identified, the victim or their legal representative must file a compensation claim through the Motor Accidents Claims Tribunal (MACT) under the Motor Vehicles Act, 1988, instead of using the Hit and Run Compensation Scheme.

In situations where the claimant has already received compensation under the Hit-and-Run Scheme and later secures compensation from the MACT, they must refund the amount previously paid to the Motor Vehicles Accident Fund.

Only cases involving grievous hurt or death caused by road accidents are eligible for compensation under the Hit-and-Run Scheme, as defined in Section 116 of the Bharatiya Nyaya Sanhita, 2023 (BNS), which replaced Section 320 of the Indian Penal Code.

Key Legal Judgements on Hit-and-Run Compensation: 

In S Rajaseekaran v. Union of India and Others, the Supreme Court highlighted the lack of awareness about the compensation schemes available to hit-and-run victims, urging law enforcement to inform victims about their rights. It further emphasized the urgency of disbursing compensation promptly, especially since the new scheme does not have a limitation period, unlike earlier versions.

Similarly, in Suo Motu v. State of Kerala, the Kerala High Court took proactive measures by advocating for insurance companies to assist in immediate treatment costs for accident victims.

Conclusion

Victims of hit-and-run accidents in India are entitled to compensation under the Motor Vehicles Act, 1988 and related schemes like the Compensation to Victims of Hit and Run Motor Accidents Scheme-2022. The process involves specific steps to file claims and receive compensation, but it is also crucial to address the challenges these victims face in identifying the offending vehicle or proving fault.

While compensation addresses the financial aspect of relief, understanding the legal consequences for hit-and-run offences, including potential criminal charges, is equally important

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This article was written and submitted by Akhil and you can reach out to the author at Akhil@bnblegal.com.