One-time payment from vehicle buyers to fund higher compensation to hit & run victims

The current compensation for injured person is Rs 12,500 and death due to hit and run is Rs 25,000. SC to hear a case for it to be increased to Rs 50,000 and Rs 2 lakh respectively

New vehicle buyers to fund higher compensation to hit and run victims

The Supreme Court is soon expected to hear a case recommending compensation for injured persons in hit and run incidents to be increased to Rs 50,000 from the current Rs 12,500. The framework, submitted on April 3, 2019, is also asking for compensation to the next of kin to be raised to Rs 2 lakh from the current Rs 25,000.

This recommendation by the court-appointed committee on road safety has already been approved by the apex court in February. It will be put into action once the Supreme Court gives a go ahead.

Related: 7 Most expensive car crashes 

How will this move impact the government and buyers?

The government would need Rs 800 crore annually to pay compensation to hit and run victims. This fund will come out of the pockets of new vehicle buyers. 

Buyers will have to make a one-time payment of Rs 500 at the time of purchasing the car. This money will go into building the fund for hit and run victims. 

What do reports say?

As per a report in The Times of India, the compensation framework may set a time period of maximum 90 days for disbursal of appropriate compensation to the victim or next of kin.

Related: All you need to know about road accidents 

According to an industry report, nearly 26,000 people were killed in hit and run cases, and 60,000 were left injured in 2017. Hit and run are cases where the perpetrator flees the accident spot, instead of helping the victim, and no traces can be found of him thereafter. As there is no one to shoulder the responsibility, the victim or his family is compensated from a dedicated fund. Currently, this fund is managed by General Insurance Corporation. 

Related: Do not skip Accidental Death Benefit rider 

If this recommendation is accepted by the Supreme Court, it will provide monetary relief to victims and go towards paying for hospital bills and missed income due to injuries. In case of death, it will help the family cope with the financial loss of the victim is the breadwinner of the family. Read more about road accidents in India. 

 

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