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A very important and big legal news is coming out at this time related to the Indian Judicial System and road safety. The highest court of the country i.e. Supreme Court of India has asked a very big and logical question to the Central Government regarding financial assistance and compensation to the victims of road accidents. A special compensation scheme has been prepared by the Central Government to provide financial assistance to the families of those who lost their lives and those injured in road accidents, but only those vehicles which have valid insurance are included in this scheme. Expressing strong objection to this, the Supreme Court has sought clarification from the Central Government as to why those victims are being deprived of the benefits of this government scheme in cases where the vehicle causing the accident is not insured. Let us know in detail what the Supreme Court has said in this matter and what is the complete mathematics behind this compensation rules of the government.
Supreme Court’s sharp question: ‘Why victims of uninsured vehicles do not get compensation?’
The Central Government has prepared a proposal for a new scheme to provide immediate financial relief to the victims of road accidents and their families. Under this proposed scheme, the government is making a provision to provide interim financial assistance of Rs 2 lakh to the dependents of a person who loses his life in a road accident and Rs 1 lakh to a person who is seriously injured.
However, when the rules of this scheme were reviewed before the Supreme Court bench, the Court found that it covered only those road accidents involving insured vehicles. Expressing strong objection to this Justice JB Pardiwala and Justice KV Viswanathan The bench asked the Central Government that if the vehicle that hit a poor or a common citizen turned out to be an uninsured vehicle, then why should the victim’s family be deprived of this interim compensation. This comment of the court has created a stir in the administrative corridors.
Motor Vehicles Act and Government’s stand: What the rules say
Responding to this sharp question of the Supreme Court, government officials and lawyers told the court that this compensation scheme has been designed under the provisions of the Motor Vehicles Act (MV Act) which mainly cover matters related to insured vehicles. Officials said that if the vehicle causing the accident is uninsured, the victims always have the option of approaching the ‘Motor Accident Claims Tribunal’ (MACT) as a legal option.
The Supreme Court bench reviewed ‘Section 6’ of this scheme very closely. According to the rules of this section, the accident victim or the legal heirs of the deceased can lodge their application for compensation through a designated online portal. However, this requires them to provide details of whether they have filed any other claim with MACT, or whether they have a case already pending. The court has also given strict instructions to the government that this scheme should be widely publicized across the country so that the general public can get complete information about their legal rights and the process for demanding interim compensation.
Insurance companies have to pay Rs 5 lakh under ‘no-fault liability’
Explaining the legal provisions for compensation in road accidents, the officials told the court that ‘Section 164’ of the Motor Vehicles Act deals directly with compensation in cases of death or serious injury. Under this section, a very important provision of ‘No-Fault Liability’ has been made.
According to this special rule, if someone dies or gets seriously injured in an accident, then the vehicle owner or his insurance company has to compulsorily pay a compensation of Rs 5 lakh in case of a dead person and Rs 2.5 lakh in case of serious injury. Under this, there is no need for the applicant making a claim to prove that the accident was caused by any specific mistake, negligence or omission of the driver. Clarifying on this, a senior official said, “That is why an interim relief of Rs 2 lakh in case of death and Rs 1 lakh in case of serious injury has been fixed as immediate relief. Later, based on the final order of MACT, the total compensation to be received may be much more than this.”
When did the process of this scheme start and what will happen next?
Officials of the Union Ministry of Road Transport and Highways also informed the court that the entire compensation scheme will be officially notified soon under the rules and provisions of the ‘Central Motor Vehicles Act’.
The ministry had shared the draft of this scheme with all the states and union territories of the country on February 23 this year so that suggestions could be taken from the states. It is noteworthy that in one of its previous orders, the Supreme Court had given strict instructions to the Union Ministry to prepare this interim compensation scheme for road accident victims by April 2025 itself. Now after this new question from the Supreme Court, it is expected that the government can make some amendments in its rules to bring the victims of uninsured vehicles also under the ambit of relief. This can prove to be a news of great relief for the common citizens who are victims of road accidents.