On February 25, 2022, the Central Government has notified Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022. This shall come into force on April 1, 2022.
Key points:
- Establishment of Motor Vehicle Accident Fund – The Motor Vehicle Accident Fund shall comprise of the following three accounts: Account for Insured Vehicles, Account for Uninsured Vehicles or Hit and Run Motor Accident and Hit and Run Compensation Amount.
- Powers and functions of Trustees – The Trust shall make the periodical review of the working and utilisation of the Motor Vehicles Accident Fund (Trust Corpus), and make recommendations to the Central Government for relevant corrective steps, wherever necessary.
- Disbursement of fund for hit and run compensation – In case of hit and run motor accidents, the compensation under section 161 shall be disbursed from the Hit and Run Compensation Account in accordance with the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022.
Note: Section 161 of the Motor Vehicles Act provides for enhanced compensation for hit-and-run cases of death and injuries. Section 161 (effective April, 2022), as amended by the Motor Vehicles Act 2019, increased the compensation for death in hit-and-run cases from Rs 25,000 to Rs. 2 Lakhs; in cases of grievous injuries, the compensation was enhanced from Rs.12,500 to Rs 50,000.
On February 25, 2022, the Central Government notified the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022 which will come into force from April 01, 2022. The Scheme is issued in supersession of the Solatium Scheme, 1989.
Key points of the Scheme:
- Constitution of Standing Committee and District Level Committee – A Standing Committee is formed, authorised to carry out the functions and duties in order to provide relief to victims, consists of several senior officers of different ministries of Central Government. A District Level Committee is formed to carry out the issues raised at the level of each district.
- Procedure for making claim application: The applicant shall submit an application seeking compensation under this scheme in Form I, including through electronic means, along with a copy of claim raised by the hospital providing the treatment, if any, as per Scheme for Cashless Treatment formulated under Section 162, and the undertaking in Form IV, and such other documents mentioned in Form I, including through electronic means, to the Claims Enquiry Officer of the Sub-Division or Taluka in which the accident took place.
- Payment of Compensation: In hit and run cases, the damage incurred by the victims decides the damages that will be paid to them.
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- The claims made under the provisions of the Act wherein the death is caused due to Motor Vehicle accident, the legal representatives of the deceased are decided by the Claims Enquiry Officers. Similarly, those victims who make claims due to suffering caused by grievous hurt in the motor vehicle accidents are awarded compensation.
- On behalf of the Trust, General Insurance Council (GIC) makes e-payment to the bank account as provided by the claimant or legal representative of the deceased, as the case may be, and simultaneously send intimation to all the concerned authorities to whom the copy of the sanction order is endorsed.
- The payment is made within fifteen days from the date of receipt of the sanction order or within a further period of thirty days with recorded reasons made in writing to the Claims Settlement Commissioner.
- Annual Report: The GIC will prepare an annual report on the working of this scheme and submit the same before the Standing Committee, with a copy to the Central Government.
