New Delhi: Expressing serious concern over fewer claims made for compensation made in hit-and-run cases, the Supreme Court on Friday directed the police and the district legal service authority to forward details of the beneficiaries to the claims enquiry officer within specified timelines.

The Court also told the Centre to decide in eight weeks on increasing the Rs.2 lakh claim limit for families of those who die in such accidents.

The central government has framed the compensation of victims of hit-and-run motor accidents scheme, 2022 which is effective from April 1, 2022. As per this scheme, a compensation of Rs.2 lakh is payable in incidents of deaths and ₹50,000 to the injured.

Also Read: SC reinstates Himachal DGP, stay HC order

A bench of justices AS Oka and Pankaj Mithal said, “Within one month from the date of the accident, the officer in charge of the police station shall forward the first accident report (FAR) to the Claims Enquiry Officer… if, after making reasonable efforts, the particulars of the vehicle involved in the accident could not be ascertained.”

The Court was hearing a plea filed by advocate Kishan Chand Jain who pointed out gaps in the scheme. He claimed that the victims of hit-and-run accidents are unaware of their entitlement under the scheme and fail to seek monetary claims. To be sure, hit-and-run cases are those where the identity of the vehicle that caused the accident cannot be ascertained. This is defined under Section 145(d) of the MV Act.

The bench was shown documents from the Union ministry of road, transport and highways (MoRTH) and the annual report of General Insurance Council (GIC) for 2022-23 which showed that in the last five years, there were 660 deaths and 113 injuries related to hit-and-run cases, for which compensation of only Rs.184.60 lakh was disbursed.

“There are cases where the police, as well as the claims enquiry officer (CEO), are aware of the fact that a hit-and-run accident has occurred. However, no efforts are made to ensure that the persons entitled to seek compensation file their claims,” the bench noted.

Tightening the process, the bench further held, “If the claim application is not received within one month, the information shall be provided by the claims enquiry officer (CEO) to the concerned district legal service authority (DLSA) with a request to the said authority to contact the claimants and assist them in filing the claim applications.”

The CEO shall ensure documents are forwarded to the claim settlement commissioner within one month from receipt of the claim application, the order added.

Also Read: Woman judges sacked: SC takes suo motu note

The Court’s directions formed part of suggestions received from amicus curiae advocate Gaurav Agarwal who felt that the 2022 scheme did not provide for timelines and failed to address situations where police officers do not forward the details of the hit-and-run cases for settling of claims.

The Court ordered a monitoring committee to be constituted in every district of the country comprising a DLSA secretary who will be the convenor, the CEO of the district (for more than one district CEO to be nominated by state), and a police officer not below the rank of deputy superintendent of police (DSP).

This Committee was required to meet at least once in two months and the Court directed member secretaries of all state LSAs to forward a report to the apex court before the Court takes up the matter next on April 22.

Noting that under sub-section (2) of Section 161 of MV Act, a sum of Rs.2 lakh is provided to the kin of those who die in hit-and-run accidents and Rs.50,000 in case of grievous injury, The bench said, “The value of money diminishes with time. We direct the Central Government to consider whether the compensation amounts can be gradually enhanced annually. The Central Government shall take an appropriate decision on this issue within eight weeks from today.”

The Court also asked the Centre to consider extending the six-month limitation period for victims to file compensation claims.

For paying compensation, a separate fund – the Motor Vehicles Accident Fund – has been created to which all insurance companies contribute their share.

Also Read: SC refuses to stay bill on CEC appointment

The compensation scheme was last revised in 2022 when compensation for death cases was significantly increased from Rs.25,000 to Rs.2 lakh and for injuries from Rs.12,500 to Rs.50,000.

Data provided by MoRTH from 2016- 2022 showed there were 55,942 hit-and-run motor accidents in 2016, which increased to 65,186 in 2017; 69,621 in 2018; and 69,621 in 2019.

The Court also directed the Standing Committee under the Act to consider the annual report submitted by the GIC and to make recommendations to the 2022 scheme.

“Standing Committee shall issue elaborate directions for developing public awareness and for sensitisation of the members of the public about the scheme,” the bench said, directing the Committee to report compliance in four months.