It is of immense significance to note that the Supreme Court in a most learned, laudable, landmark and latest judgment titled S Rajaseekaran vs Union of India & Ors. in I.A. No.71387 of 2023 in Writ Petition (C) No. 295 of 2012 and cited in Neutral Citation No.: 2024 INSC 37 that was pronounced as recently as on January 12, 2024 has issued most commendable directions to ensure that the victims and their legal representatives in hit and run accident cases are informed about the availability of the compensation scheme and that they are assisted in filing the claims. It is also a matter of great satisfaction to note that the Apex Court mandated that the police in a hit-and-run accident must inform the victim or their legal representatives about the availability of the compensation scheme under Section 161 of the Motor Vehicles Act. It merits mentioning that the Apex Court very rightly directed the Central Governments to assess whether the amount of compensation under Section 161 of the Motor Vehicles Act, which currently stands at Rs 2 lakhs for death and Rs 50 thousand for grievous injury resulting from hit-and-run accidents, should be progressively increased annually since the value of money diminishes over time.
At the very outset, this brief, brilliant, bold and balanced judgment authored by Hon’ble Mr Justice Abhay S Oka for a Bench of the Apex Court comprising of himself and Hon’ble Mr Justice Pankaj Mithal sets the ball in motion by first and foremost putting forth in para 1 that, “We have heard the learned counsel on the question of issuing interim directions for the effective implementation of the provisions of the Motor Vehicles Act, 1988 (for short, ‘the MV Act’) relating to the grant of compensation in case of hit and run motor accidents.”
Do note, the Bench notes in para 2 that, “Section 161 of the MV Act, as applicable from 1st April 2022, reads thus:
“161. Special provisions as to compensation in case of hit and run motor accident.—(1) Notwithstanding anything contained in any other law for the time being in force or any instrument having the force of law, the Central Government shall provide for paying in accordance with the provisions of this Act and the Scheme made under sub-section (3), compensation in respect of the death of, or grievous hurt to, persons resulting from hit and run motor accidents.
(2) Subject to the provisions of this Act and the Scheme made under sub-section (3), there shall be paid as compensation,—
(a) in respect of the death of any person resulting from a hit and run motor accident, a fixed sum of two lakh rupees or such higher amount as may be prescribed by the Central Government;
(b) in respect of grievous hurt to any person resulting from a hit and run motor accident, a fixed sum of fifty thousand rupees or such higher amount as may be prescribed by the Central Government.
(3) The Central Government may, by notification in the Official Gazette, make a Scheme specifying the manner in which the Scheme shall be administered by the Central Government or General Insurance Council, the form, manner and the time within which applications for compensation may be made, the officers or authorities to whom such applications may be made, the procedure to be followed by such officers or authorities for considering and passing orders on such applications, and all other matters connected with, or incidental to, the administration of the Scheme and the payment of compensation under this section.
(4) A Scheme made under sub-section (3) may provide that,—
(a) a payment of such sum as may be prescribed by the Central Government as interim relief to any claimant under such Scheme;
(b) a contravention of any provision thereof shall be punishable with imprisonment which may extend to two years, or with fine which shall not be less than twenty-five thousand rupees but may extend to five lakh rupees or with both;
(c) the powers, functions or duties conferred or imposed on any officer or authority by such Scheme may be delegated with the prior approval in writing of Central Government, by such officer or authority to any other officer or authority.””
As things stands, the Bench specifies in para 3 stating that, “In terms of sub-Section (3) of Section 161, the Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022 (for short, ‘the Scheme’) has been brought into force with effect from 1st April 2022. It superseded the Solatium Scheme, 1989 (the Solatium Scheme) framed under unamended sub-Section (1) of Section 163 of the MV Act. The broad framework of the Scheme can be summarised as follows;
a) The Scheme provides for the setting up of the Standing Committee and District Level Committees. The Standing Committee is at the central level. The primary duty of the Standing Committee is to periodically review the working of the Scheme, including consideration of the report of the General Insurance Council. The Standing Committee has the power to direct corrective steps to be taken. Another important function assigned to the Standing Committee is to make recommendations to the Central Government for the amendment of the Scheme for its better and more effective implementation;
b) The District Level Committees are under a mandate to evaluate the progress of the Scheme's implementation in the concerned district and take corrective measures. Each District Level Committee is under an obligation to submit a report to the Standing Committee every quarter. The report must include monthly statistics about the claim applications received and how the same are dealt with. Another essential function of the District Level Committee is to ensure that the Scheme gets adequate publicity and the claimants are made aware of their rights under the Scheme;
c) Clause 19 provides the procedure for applying for compensation under the Scheme. The applications are firstly considered by the Claims Enquiry Officer, defined in sub-clause (e) of clause 2 of the Scheme. Upon receipt of the applications, the Claims Enquiry Officer must obtain a copy of the First Accident Report (FAR) and post-mortem report (in case of a fatal accident) from the concerned authorities. It is the duty of the Claim Enquiry Officer to decide who the rightful claimants are to claim the compensation;
d) After receiving a report from the Claims Enquiry Officer, the Claims Settlement Commissioner appointed in terms of sub-clause (f) of clause 2 of the Scheme is empowered to sanction the claim as provided in clause. It is the ultimate responsibility of the General Insurance Council to make an e-payment of the compensation amount within 15 days from the date of receipt of the sanction order and
e) Under Clause 24 of the Scheme, the General Insurance Council is under an obligation to prepare an annual report on the working of the Scheme and submit the same to the Standing Committee. The General Insurance Council is constituted under Section 64(C) of the Insurance Act, 1938.”
In sum, we thus see that the Apex Court in hit and run accidents cases has rightly issued commendable directions to ensure that the victims are informed about compensation scheme so that they are able to avail the benefit from it. It must be strictly implemented as directed by the top court. No denying!
By Sanjeev Sirohi
(The content of this article reflects the views of writers and contributors, not necessarily those of the publisher and editor. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Delhi/New Delhi only)
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