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.
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