Motor Vehicles Act: Section 161 – Special provisions as to compensation in case of hit and run motor accident

(1) For the purposes of this section, section 162, and section 163—
(a) “grievous hurt” shall have the same meaning as in the Indian Penal Code (45 of 1860);
(b) “hit and run motor accident” means an accident arising out of the use of a motor vehicle or motor vehicles the identity whereof cannot be ascertained in spite of reasonable efforts for the purpose;
(c) “scheme” means the scheme framed under section 163.

(2) Notwithstanding anything contained in the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) or any other law for the time being in force or any instrument having the force of law, the General Insurance Corporation of India formed under section 9 of the said Act and the insurance companies for the time being carrying on general insurance business in India shall provide for paying in accordance with the provisions of this Act and the scheme, compensation in respect of the death of, or grievous hurt to, persons resulting from hit and run motor accidents.

(3) Subject to the provisions of this Act and the scheme, there shall be paid as compensation—
(a) in respect of the death of any person resulting from a hit and run motor accident, a fixed sum of 1[twenty-five thousand rupees];
(b) in respect of grievous hurt to any person resulting from a hit and run motor accident, a fixed sum of 2[twelve thousand and five hundred rupees].

(4) The provisions of sub-section (1) of section 166 shall apply for the purpose of making applications for compensation under this section as they apply for the purpose of making applications for compensation referred to in that sub-section.

Simplified Explanation

Section 161 of the Motor Vehicles Act in India addresses special provisions for compensation in the event of a hit-and-run motor accident. This section is designed to ensure that victims or their families are compensated even when the identity of the offending vehicle or driver cannot be ascertained. Hit-and-run accidents can leave victims without a clear party to claim compensation from, and this section helps address that issue through a government-funded scheme.

Overview of Section 161

This section establishes a compensation scheme for victims of hit-and-run accidents or their legal heirs, providing financial relief when the vehicle responsible for the accident is unknown. The compensation is funded by a solatium fund, which is maintained by the government to assist in such cases. The purpose is to ensure that victims of such accidents are not left uncompensated.

Key Elements of Section 161

1. Definition of Hit-and-Run Accident:
   • A hit-and-run accident refers to an accident caused by a motor vehicle where the identity of the vehicle or the driver is unknown despite reasonable efforts to trace them.
2. Compensation for Hit-and-Run Victims:
   • If a person is killed or permanently disabled in a hit-and-run accident, the government provides compensation from a specially created fund known as the Solatium Fund. The compensation amounts are:
     • ₹2,00,000 (two lakh rupees) for death.
     • ₹50,000 (fifty thousand rupees) for permanent disablement.
3. Solatium Fund:
   • The government maintains this fund to ensure that victims of hit-and-run accidents receive compensation even if the vehicle responsible cannot be identified.
   • The fund is contributed to by insurance companies and is managed under guidelines issued by the government.
4. Eligibility:
   • The victim or their legal heirs are entitled to this compensation if the accident qualifies as a hit-and-run incident, and they are unable to identify or trace the driver or vehicle responsible for the accident.
5. Claims Process:
   • Victims or their families must file a claim with the Claims Enquiry Officer or other designated authorities. The government has set up procedures for the submission of claims and the disbursement of compensation from the Solatium Fund.
6. No Requirement of Legal Proceedings:
   • Since the identity of the vehicle or driver is not known, the claimant does not need to go through a lengthy court process to prove fault. The compensation is provided on the basis of the accident report and evidence of death or permanent disability.
7. Supplementary to Other Laws:
   • This provision does not affect the rights of victims to claim compensation under other sections of the Motor Vehicles Act or other laws if the driver or vehicle is later identified or if other compensation becomes available.

Practical Implications

• Relief for Victims: This section ensures that victims of hit-and-run accidents or their families are not left without compensation, even when the driver responsible for the accident is untraceable.
• Simplified Claims Process: Since no litigation is required to prove liability, the claims process for compensation is straightforward, reducing the burden on victims and their families during what is often a traumatic time.
• Government Support: The Solatium Fund provides a safety net for accident victims, reflecting the government’s responsibility in protecting its citizens in situations where the responsible party cannot be held accountable.
• Reduction in Uncertainty: Victims of hit-and-run accidents often face uncertainty about compensation due to the absence of the offender. Section 161 provides clear and predictable compensation to reduce this uncertainty.

Conclusion

Section 161 of the Motor Vehicles Act plays a crucial role in providing financial relief to victims of hit-and-run accidents. By establishing a government-backed compensation scheme through the Solatium Fund, this section ensures that individuals who are affected by such accidents are not left without support. The provision reflects the law’s commitment to safeguarding public welfare, ensuring that victims of unfortunate circumstances receive timely and adequate compensation, even when the driver responsible cannot be identified.