Lok Sabha Question No. 4574 (UNSTARRED), answered on 2018-03-22
Subject: Compensation for Death
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: ANURAG SINGH THAKUR, RAHUL KASWAN, SRINIVAS KESINENI

be pleased to state:

(a)  the  details  of  various  Acts  like  Motor  Vehicle  Act  under  which  compensation for death is awarded;

(b) whether the Government proposes to review the rate of compensation provided to victims of road accidents;

(c) if so, the details thereof and the manner in which payment of compensation is likely to be made along with time limit fixed in this regard and guidelines for calculating the quantum of compensation under these Acts;

(d) whether any committee has been constituted in this regard and if so, the details thereof; and

(e) the time by which recommendation made by the said committee is likely to be implemented?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## (SHRI MANSUKH L. MANDAVIYA)

(a)  to  (e)  Compensation  for  death  in  road  accident  to  the  victims/legal  heir  of  the  victim  is provided under various provisions of the Motor Vehicles Act, 1988. These are : -(i) As per section 161 of the Motor Vehicles Act, 1988, in cases where the identity of the vehicle causing accident is not established and it is impossible to determine the owner of the vehicle causing accident/insurer are known as 'hit and run cases'. In such cases, compensation is paid to the accident victim from a Solatium Fund, maintained by the General Insurance Corporation(GIC), through a surcharge on the Insurance Policies and such compensations are paid on the orders of District Magistrates after due  Inquiry.  (ii)  Compensation  to  road  accident  victims  on  'no  fault  principle'  (i.e  where  the victims  or  their  heirs/successors  do  not  have  to  prove  the  negligence  of  the  motor  vehicles  to claim  such  compensation)  is  given  under  Section  163A  of  the  MV  Act,  as  per  the  structured

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION NO. 4574 ANSWERED ON 22 ND  MARCH, 2018

## COMPENSATION FOR DEATH

## 4574.   SHRI ANURAG SINGH THAKUR: SHRI RAHUL KASWAN: SHRI KESINENI NANI:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

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compensation formula listed under Schedule II of the Motor Vehicles Act. The Schedule tabulates the age and annual income of the victim and then prescribes a multiplier for arriving at the amount of compensation. (iii) Section 165 of the  Motor Vehicles Act, 1988, also allows application for compensation to Motor Accident Claim Tribunal (MACT) or Civil Courts, as the case may be, on the principle of fault/negligence of the vehicle. In such cases, MACT or the Courts are authorized to award the compensation without limit.

The Ministry of Road Transport and Highways constituted a Group of Ministers (GoM) from across states to deliberate upon and propose strategies for reducing road fatalities and to suggest actionable measures for implementation. On the basis of recommendations of the GoM, the  Ministry  introduced  the  Motor  Vehicles  (Amendment)  Bill,  2016  in  the  Parliament  (Lok Sabha)  on  9 th August,  2016  for  consideration  and  passing  which  inter-alia  proposes  hikes  in compensation for third party insurance cover and compensation in case of hit and run cases.

The Bill was referred to the Department - related Parliamentary Standing Committee on Transport, Tourism and Culture for examination and report. The Committee presented its report to the Rajya Sabha on 8 th February, 2017 and the Bill was introduced and passed on 10 th April, 2017 by the Lok Sabha. The Bill as passed by Lok Sabha was referred to a Select Committee of the  Rajya  Sabha  which  has  presented  its  report  to  the  Rajya  Sabha  on  22 nd December,  2017. Presently, the Bill is with Rajya Sabha for consideration and passing.

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