Hit and run fund: Rs 500 extra on every new car?

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  1. The SC is scheduled to hear a case on 3rd April 2019 where the framework for providing compensation in hit and run cases is likely to be submitted.
  2. The SC had accepted court appointed committee’s recommendation to increase the minimum compensation for death in a hit-and-run case to Rs 2 lakh and Rs. 50000 for injured persons. The Supreme Court had constituted the committee headed by Justice Radhakrishnan in 2014.
  3. The Court has observed that the present amount of compensation is too less and the law should be amended to enhance the amount. It has directed the Centre and General Insurance Council to frame a scheme of payment of compensation to ensure that the amount is paid to the right claimant till the law is amended.
  4. In ‘Hit & Run’ cases, accident victims are eligible for compensation through a Special Fund constituted in terms of Section 163 of the Motor Vehicles Act, 1988 called ‘Solatium Fund’. It is contributed by general insurance industry under an agreed formula.
  5. At present, the amount of Compensation is Rs. 25,000 in the event of death and Rs. 12,500 for grievous injuries.