Hit-And-Run Cases | Supreme Court To Consider Cashless Treatment For Road Accident Victims & Online Transfer Of Compensation Amounts

In a plea raising concerns about road safety, the Supreme Court is set to consider the issue of cashless treatment to victims of road accidents as well as formulation of a mechanism so that the General Insurance Corporation of India can make online transfers of compensation to the accounts of persons held entitled.

The order has been passed by a bench of Justices Abhay S Oka and AG Masih, stating,

"...Directions will have to be issued regarding accompaniments of Form III appended to the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 so that the General Insurance Corporation of India is able to make online transfer to the account of the persons held entitled to the compensation. The other issue which we have to consider is about cashless treatment to the victims of the road accidents."

The matter is next listed for consideration on August 27. However, the issue of implementation of Section 136A of the Motor Vehicles Act, 1988 (electronic monitoring and enforcement of road safety) will be considered by the Court on September 2.

Background

As per the mandate of Section 161 of the Motor Vehicles Act, the Central Government has framed the Compensation of Victims of Hit and Run Motor Accidents Scheme, 2022 which is effective from April 1, 2022. As per this scheme, compensation of Rs. 2 lakhs and Rs. 50,000 is payable for deaths and injuries respectively arising out of road accidents where the offending vehicle is not identified.

However, the number of people who avail the compensation under the scheme is very low. For instance, although there were 67,387 hit and run accidents in the year 2022, the number of claims raised under the hit-and-run scheme during the financial year 2022-23 were only 205, out of which 95 were settled.

A document from the Ministry of Road Transport and Highways showed that in the last five years, there were 660 deaths in hit and run cases, and 113 injury cases, for which compensation of Rs.184.60 lakhs was disbursed.

On January 12, the Court took note of the dismal rate of grant of compensation to hit and run accident victims and issued a slew of directions, including that in a hit-and-run case, the police must inform the victims about the scheme. Further, it suggested revision of the compensation amount for death and grievous injuries arising out of hit and run cases. The concerned Standing Committee was also directed to take steps to increase public awareness about the scheme and to effectively implement the same.

Senior Advocate Gaurav Agrawal, who has been appointed as Amicus Curiae in the matter, has given some suggestions to the Court. An order in terms of the same will be passed on the next date.

Case Title: S Rajaseekaran v. Union of India and Ors., WP(C) No.295/2012 

Click Here To Read/Download Order