The court also directed the General Insurance Council (GIC), the apex body of insurance companies, to set up an online portal by March 14, 2025, for faster processing of compensation claims for hit-and-run accident victims.
NEW DELHI: The Supreme Court of India, on Wednesday,(8th Jan) ordered the Central Government to implement a 2022 scheme for providing cashless medical treatment to motor accident victims during the critical “golden hour”—the first hour after an accident when immediate medical care is crucial.
The court also directed the General Insurance Council (GIC), the apex body of insurance companies, to set up an online portal by March 14, 2025, for faster processing of compensation claims for hit-and-run accident victims.
A two-judge bench led by Justice Abhay S. Oka highlighted the importance of timely medical aid in saving lives. He stated:
“Every human life is precious. When a person gets injured in a motor accident, his near and dear ones may not be around. Therefore, there is no one to help him. However, the injured person must receive the required medical treatment in the golden hour, since it is essential for his survival.”
Justice Augustine George Masih, who was also part of the bench, emphasized that the provision for cashless treatment under Section 162 of the Motor Vehicles Act protects the fundamental right to life under Article 21 of the Constitution.
He noted:
“The provision made in Section 162 for framing a scheme for providing cashless treatment in the golden hour seeks to uphold and protect the right to life guaranteed by Article 21 of the Constitution. Moreover, it is a statutory obligation of the Central Government to frame the scheme.”
The court emphasized the urgency of the matter and directed the government to frame the cashless treatment scheme without delay, ensuring it is finalized by March 14, 2025.
The bench further instructed that a copy of the scheme be presented to the court during the next hearing scheduled for March 24, 2025.
Explaining the significance of the golden hour, the bench stated:
“The ‘golden hour’ following a traumatic injury suffered in a motor accident is the most crucial hour. If medical treatment is not provided within this time, the injured may lose his/her life. In a scenario where accident cases are ever increasing, Section 162 becomes more crucial.”
The issue was brought to the court’s attention through two applications filed by advocate Kishan Chand Jain. He pointed out that despite the inclusion of Section 162 in April 2022, which mandates cashless treatment, the scheme has not been implemented.
The advocate also sought faster resolution of hit-and-run compensation claims. Under Section 161 of the Motor Vehicles Act, the government had introduced the Compensation of Victims of Hit and Run Motor Accidents Scheme in 2022. This scheme allows victims to claim compensation of up to Rs 2 lakh in cases where the vehicle responsible for the accident cannot be identified.
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To address the delays in processing claims, the Supreme Court directed the General Insurance Council to create an online portal. The platform will simplify the process by enabling claimants to upload necessary documents easily.
The court noted that significant progress had been made since its earlier directive, with 1,662 claimants receiving compensation between April 1, 2024, and August 31, 2024. However, 1,026 claims remain pending.
BRIEF FACTS:
These directions were issued in response to a writ petition filed by Dr. S. Rajaseekaran, Chairman and Head of the Department of Orthopaedic Surgery at Ganga Hospital, Coimbatore.
Advocate’s Interventions
Two Interlocutory Applications (IA) were filed in the case by Advocate Kishan Chand Jain. The first sought the implementation of cashless treatment for road accident victims, as mandated under Section 162 of the Motor Vehicles Act (MV Act). The second focused on ensuring proper compensation under the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, framed under Section 161 of the MV Act.
Hit-and-Run Compensation Scheme
The Compensation Scheme for hit-and-run victims, effective from April 1, 2022, specifies that:
- Rs 2 lakhs is to be paid in case of fatalities.
- Rs 50,000 is to be paid in case of injuries.
Despite the scheme’s introduction, its utilization has been alarmingly low. The Court was informed that, in 2022, 67,387 hit-and-run accidents were reported, but only 205 claims were filed during the financial year 2022-23, with 95 being settled.
A report from the Ministry of Road Transport and Highways revealed that in the past five years, compensation was granted for only 660 fatalities and 113 injury cases, amounting to Rs184.60 lakh. This underutilization prompted the Supreme Court to call for urgent action.
January 2024 Directions
On January 12, 2024, the Supreme Court issued key directions to address the low awareness and implementation of the hit-and-run compensation scheme:
- Mandatory Notification by Police: Police were directed to inform victims or their dependents about the scheme.
- Revised Compensation Amounts: The Court suggested increasing the compensation amounts under the scheme.
- Awareness Campaigns: Public awareness regarding the scheme was deemed essential for better utilization.
September 2024 Directives
On September 2, 2024, the Supreme Court emphasized the need for road safety enforcement and directed state governments to:
- Implement Section 136A of the MV Act, which mandates electronic monitoring and enforcement of road safety measures.
- Enforce Rule 167A(A) of the Central Motor Vehicle Rules, which requires issuing challans based on footage from electronic enforcement devices.
Case Title – S. Rajaseekaran v. Union of India and Ors.|WP (C) No. 295/2012
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