(1) The Central Government may, by notification in the Official Gazette, make a scheme specifying the manner in which the scheme shall be administered by the General Insurance Corporation, the form, manner, and the time within which applications for compensation may be made, the officers or authorities to whom such applications may be made, the procedure to be followed by such officers or authorities for considering and passing orders on such applications, and all other matters connected with, or incidental to, the administration of the scheme and the payment of compensation.
(2) A scheme made under sub-section (1) may provide that—
(a) a contravention of any provision thereof shall be punishable with imprisonment for such term as may be specified but in no case exceeding three months, or with fine which may extend to such amount as may be specified but in no case exceeding five hundred rupees or with both;
(b) the powers, functions, or duties conferred or imposed on any officer or authority by such scheme may be delegated with the prior approval in writing of the Central Government, by such officer or authority to any other officer or authority;
(c) any provision of such scheme may operate with retrospective effect from a date not earlier than the date of establishment of the Solatium Fund under the Motor Vehicles Act, 1939 (4 of 1939), as it stood immediately before the commencement of this Act:
Provided that no such retrospective effect shall be given so as to prejudicially affect the interests of any person who may be governed by such provision.
Simplified Explanation
Section 163 of the Motor Vehicles Act in India outlines the provisions for establishing a scheme for the payment of compensation in the event of hit-and-run motor accidents. This section provides the framework for the government to create and manage a compensation scheme specifically for victims of accidents where the driver or vehicle responsible cannot be identified.
Overview of Section 163
Section 163 empowers the Central Government to formulate a detailed scheme to ensure that victims of hit-and-run accidents or their families are compensated, even when the liable party cannot be traced. The scheme is intended to be fair, efficient, and accessible, offering financial relief to those affected by such accidents.
Key Elements of Section 163
- Authority to Create a Scheme:
- The Central Government has the authority to design and implement a scheme specifically for the payment of compensation in hit-and-run cases. This scheme must provide a structured process for determining eligibility, filing claims, and disbursing compensation to victims or their families.
- Eligibility Criteria:
- The scheme would define who is eligible to receive compensation under the hit-and-run provision. Typically, this includes individuals who are injured or disabled in such accidents or the legal heirs of those who have died due to hit-and-run accidents.
- Amount of Compensation:
- The scheme sets the amount of compensation that will be paid out in hit-and-run cases. As per Section 161, the compensation amounts are:
- ₹2,00,000 for death.
- ₹50,000 for permanent disablement.
- The scheme may also address any updates or changes to these amounts over time.
- The scheme sets the amount of compensation that will be paid out in hit-and-run cases. As per Section 161, the compensation amounts are:
- Mechanism for Filing Claims:
- The scheme will detail the procedures for filing claims, including where and how victims or their families can apply for compensation. This may involve submitting documents, accident reports, and other proof of injury or death to relevant authorities or claims officers.
- Administration of the Scheme:
- The scheme would designate the administrative bodies responsible for processing claims and making payments. This includes identifying Claims Enquiry Officers or other officials who will handle claims related to hit-and-run accidents.
- Funding Source:
- Compensation payments under the scheme are typically made from the Solatium Fund, a government-managed fund that is contributed to by insurance companies and managed according to government guidelines. This fund is specifically set aside to provide financial relief to victims of hit-and-run accidents.
- Timely Compensation:
- The scheme would ensure that compensation is paid in a timely manner, without undue delays. The goal is to provide quick financial relief to victims or their families, who may be facing sudden economic hardships due to the accident.
Practical Implications
- Government Support: The section ensures that victims of hit-and-run accidents have a government-backed safety net to rely on for compensation, even when the responsible driver cannot be identified.
- Structured and Fair Process: By mandating a formal scheme, the law creates a structured, transparent, and fair process for compensating victims, ensuring consistency and accessibility across the country.
- Financial Relief for Victims: The scheme provides critical financial relief to those affected by hit-and-run accidents, particularly when there is no clear party to claim compensation from. This helps victims manage medical expenses, funeral costs, or loss of income.
- Ease of Filing Claims: The scheme is intended to simplify the process of filing claims, reducing bureaucratic hurdles for victims or their families at a time of distress.
Conclusion
Section 163 of the Motor Vehicles Act is a key provision that allows the government to establish a comprehensive scheme for compensating victims of hit-and-run motor accidents. It ensures that people affected by such accidents are not left without support, even when the responsible driver or vehicle cannot be traced. The section ensures the creation of a fair and efficient process for filing claims and receiving compensation, contributing to the welfare and protection of road accident victims. By providing timely and structured financial relief, this section upholds the principles of justice and public safety in cases where identifying the liable party is impossible.