Page 85 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

legislation designed to protect the rights of such victims
of Hit and run accidents.

In India, he concept of payment of compensation to the
'hit and run' accident victims was introduced by inserting
section 109-A to 109-C to Motor Vehicles Act, 1939 by
Act 47 of 1982 w.e.f 01/10/1982.

Initially, the amount of compensation was Rs. 5,000/-
for death and Rs. 2,500/- for grievous hurt. Subsequently
increased the same to Rs. 25,000/- and Rs. 12,500/- for
death and grievous hurt respectively under section 161
of the Motor Vehicles Act, 1988 w.e.f 01/07/1989.

However the same was increased to Rs. 50,000/-
and Rs.25,000/- for death and grievous hurt
respectively by amending Act of 54 of 1994 w.e.f
14/11/1994.

As per the Bill relating to proposed amendment to Motor
Vehicle Act pending before the Parliament the amount
of compensation is proposed to increased to Rs.
1,00,000/- and Rs. 50,000/- for death and grievous hurt
respectively. However, the same is still, pending.

Section 161 of the Motor Vehicles Act, 1988 provides
for fixed compensation of Rs. 25,000/- in case of death

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