Section 161: Special provisions as to compensation in case of hit and run motor accident
Motor Vehicles Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1988
Motor Vehicles Act • Official Statutory Text & Practice Guide
(1) Notwithstanding anything contained in any other law for the time being in force or any instrument having the force of law, the Central Government shall provide for paying in accordance with the provisions of this Act and the scheme made under sub-section (3), compensation in respect of the death of, or grievous hurt to, persons resulting from hit and run motor accidents.
(2) Subject to the provisions of this Act and the scheme made under sub-section (3), 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 two lakh rupees or such higher amount as may be prescribed by the Central Government;
(b) in respect of grievous hurt to any person resulting from a hit and run motor accident, a fixed sum of fifty thousand rupees or such higher amount as may be prescribed by the Central Government.
(3) 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 Central Government or General Insurance Council, 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 under this section.
(4) A scheme made under sub-section (3) may provide that, -
(a) a payment of such sum as may be prescribed by the Central Government as interim relief to any claimant under such scheme;
(b) a contravention of any provision thereof shall be punishable with imprisonment which may extend to two years, or with fine which shall not be less than twenty-five thousand rupees but may extend to five lakh rupees or with both;
(c) 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 Central Government, by such officer or authority to any other officer or authority.
Legal Commentary & Landmark Judgments: Section 161
Section 161 of the Motor Vehicles Act, 1988 establishes a specialized statutory compensation scheme for victims of 'hit and run' motor accidents where the identity of the offending vehicle cannot be ascertained.
Following the 2019 Amendment and the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, statutory compensation was enhanced from nominal sums to Rs. 2,00,000 in case of death and Rs. 50,000 in case of grievous hurt. The compensation is disbursed from the Motor Vehicle Accident Fund created under Section 164B, administered through District Claims Enquiries and Inquiry Officers.
Section 161 serves as the final safety net for innocent pedestrians and motorists struck by unidentified vehicles. Applications are processed through the Sub-Divisional Magistrate (Inquiry Officer) who submits a report to the Claims Settlement Commissioner (District Magistrate). If the offending vehicle is subsequently identified, the compensation paid under Section 161 must be refunded under Section 163 upon recovery from the insurer.