Supreme Court Intervenes To Enhance Compensation For Hit-and-Run Victims

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In a landmark judgment, on 12 January the Supreme Court of India has directed the Central Government to reassess the compensation awarded to victims of hit-and-run accidents, emphasizing the need to account for the diminishing value of money over time. This directive aims to address the inadequacies in the current compensation scheme under the Motor Vehicles Act.

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Under the existing framework of Section 161 of the Motor Vehicles Act 1988, victims of hit-and-run accidents are entitled to a compensation of ₹2 lakh in case of death and ₹50,000 for injuries. However, the Supreme Court, led by Justices Abhay S Oka and Pankaj Mithal, has identified a significant gap between the number of accidents and the compensation claims made.

The court’s observation came to light following a report by amicus curiae Advocate Gaurav Agarwal, which revealed that in 2022, out of 67,387 hit-and-run incidents, only 205 compensation claims were filed, with just 95 of these being settled. This discrepancy prompted the bench to state,

“If we compare the number of hit and run road accidents reported and the number of cases registered for seeking compensation, what stares at the face is that a negligible number of victims have taken advantage of the said scheme.”

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To bridge this gap, the Supreme Court has issued several directives:

1.Police officers handling hit-and-run cases must inform the victims or their legal representatives about the compensation scheme, providing them with the contact details of the jurisdictional Claims Enquiry Officer.

2. The officer in charge of the Police Station is required to forward the First Information Report (FAR) to the Claims Enquiry Officer within one month of the accident.

3. A Monitoring Committee at each district level, comprising the Secretary of the District Legal Service Authority, the Claims Enquiry Officer, and a nominated police officer, will oversee the scheme’s implementation.

4. The Claims Enquiry Officer must ensure that a report with recommendations and other documents is forwarded to the Claim Settlement Commissioner within one month of receiving a claim application.

Addressing the issue of compensation adequacy, the bench suggested,

“The value of money diminishes with time. We direct the Central Government to consider whether the compensation amounts can be gradually enhanced annually. The Central Government shall take an appropriate decision on this issue within eight weeks from today.”

Additionally, the bench directed the Standing Committee to take effective steps to increase public awareness about the scheme and to ensure its effective implementation. The court also suggested a modification to the limitation period for filing claims, proposing a one-time extension for those entitled under the earlier Solatium Scheme, acknowledging that many victims might not have been aware of their rights.

The Supreme Court has scheduled the next hearing on this matter for April 22, 2024, to monitor the compliance with these directives.

This judgment by the Supreme Court marks a significant step towards providing fair and adequate compensation to victims of hit-and-run accidents in India. It recognizes the need for a compensation scheme that evolves in line with economic changes, ensuring justice and support for those affected by such unfortunate incidents.