(1) Every State Government in co-ordination with the Central Government shall prepare a scheme for providing funds for the purpose of compensation to the victim or his dependents who have suffered loss or injury as a result of the crime and who require rehabilitation.
(2) Whenever a recommendation is made by the Court for compensation, the District Legal Service Authority or the State Legal Service Authority, as the case may be, shall decide the quantum of compensation to be awarded under the scheme referred to in sub-section (1).
(3) If the trial Court, at the conclusion of the trial, is satisfied, that the compensation awarded under section 395 is not adequate for such rehabilitation, or where the cases end in acquittal or discharge and the victim has to be rehabilitated, it may make recommendation for compensation.
(4) Where the offender is not traced or identified, but the victim is identified, and where no trial takes place, the victim or his dependents may make an application to the State or the District Legal Services Authority for award of compensation.
(5) On receipt of such recommendations or on the application under sub-section (4), the State or the District Legal Services Authority shall, after due enquiry award adequate compensation by completing the enquiry within two months.
(6) The State or the District Legal Services Authority, as the case may be, to alleviate the suffering of the victim, may order for immediate first-aid facility or medical benefits to be made available free of cost on the certificate of the police officer not below the rank of the officer in charge of the police station or a Magistrate of the area concerned, or any other interim relief as the appropriate authority deems fit.
(7) The compensation payable by the State Government under this section shall be in addition to the payment of fine to the victim under section 65, section 70 and sub-section (1) of section 124 of the Bharatiya Nyaya Sanhita, 2023.
Legal Commentary & Landmark Judgments: Section 396
Section 396 of the Bharatiya Nagarik Suraksha Sanhita, 2023 establishes the statutory Victim Compensation Scheme administered through State and District Legal Services Authorities.
Crucially, sub-section (4) provides that where no trial takes place because the offender is not traced or identified, but the victim is identified, the victim or their dependants may apply directly to the Legal Services Authority for compensation.
Section 396 guarantees that victims receive compensation irrespective of whether the accused is convicted, acquitted, or untraced. Legal aid practitioners can approach the DLSA immediately under Section 396(6) to secure interim emergency medical expenses for sexual assault or acid attack victims without awaiting trial conclusion.