Solatium fund to Compensate Accident Victims in Hit and Run Cases
In ‘Hit & Run’ cases, accident victims are eligible for compensation through a Special Fund constituted in terms of Section 163 of the Motor Vehicles Act, 1988 called ‘Solatium Fund’. The amount of Compensation is `25,000/- in the event of death and `12,500/- for grievous injuries. A portion of the Gross Written Premium is contributed towards this Fund every year by both Public and Private Insurers. However, in case the vehicle is without insurance, the victim/dependents has the right to claim compensation from the owner/driver under Motor Vehicles Act, 1988.
The Sundar Committee appointed by Ministry of Road Transport & Highways (MoRTH) has recommended that the Certificate of Insurance should be co-terminus with the validity of Certificate of Registration of the motor vehicle.
The MoRTH has informed that there is no proposal to levy one-time insurance premium from new vehicles to compensate road accident victims.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.
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