Not Even Half of Claims Filed for Hit-and-run Cases Settled in Last Financial Year, Shows MoRTH Data

As many as 205 compensation claims were filed in the year 2022-23 for cases related to hit-and-run incidents on roads and only 95 – not even 50 per cent – were settled, data from the Motor Vehicle Accident Fund Trust shows. The Ministry of Road Transport and Highways (MoRTH) set up the Motor Vehicle Accident Fund last year and it became operational on April 1, 2022. The trust issued its first annual report last month and shared the details of the Hit and Run Compensation Account.

“A total of 205 claims were received in FY 2022-23 under the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022. Claims worth Rs 1.78 crore were disbursed,” the report said.

Out of these, 95 claims have been settled and as many as 110 were pending at the end of the financial year. Further, of these 95 claims, 87 were cases related to deaths – for Rs 1.74 crore – and eight were of injuries – Rs 4 lakh.

Compensation in cases of death is Rs 2 lakh and for injuries is Rs 50,000. The Hit and Run Compensation Account has been activated by crediting of the balance amount of Rs 76.28 crore from the erstwhile Solatium Scheme, 1989.

Among the challenges faced by the trust was the utilisation of old forms leading to insufficient data, non-receipt or missing vital documents, discrepancies in vital information across documents, and incomplete or unclear scanned copies.

“True success lies not just in numbers but in the introduction of streamlined systematic processes. The victims or their families must receive their rightful compensation in the shortest possible time. One of the most important ingredients for running the scheme expeditiously and efficiently is the human resource. It is understood that the Council is taking required steps for strengthening of the claims team,” the report said.

It also added that despite the challenges, including operational, proactive measures were taken to streamline the process and to handle the increasing volume of cases.

“With consistent communication, technological advancements, and effective strategies, we aim to further enhance the compensation process, ensuring timely and just relief for victims,” it said.

History of the fund

The concept of compensating victims of hit-and-run cases was first introduced in 1982 as an amendment to the Motor Vehicles Act, 1939. Subsequently, the Motor Vehicles Act, 1988, incorporated the Solatium Scheme, 1989. This initial compensation framework was last revised in 1994. The Solatium Fund Scheme of 1989 was replaced by the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022.

The new scheme is exclusively for victims of road accidents involving unidentified vehicles that flee the scene. If the offending vehicle is identified, the victim can only claim under this scheme for grievous injuries as defined in the Indian Penal Code (1960). Otherwise, claims should be made through the Motor Accident Claims Tribunal (MACT).

The dedicated Hit and Run Compensation Account was established in 2022 under the Motor Vehicle Accident Fund. The General Insurance Council is responsible for fund administration, overseen by the Trust.

Better implementation

For a wider implementation of the scheme at the grassroots level, the central government has engaged with district administrations to enable more victims to file claims and avail compensation.

The Trust has also engaged with states to constitute district-level committees to monitor implementation, provide guidance, and raise awareness in their areas.