Hit and Run, and the Golden Hour

Notice the forum. A hit and run claim is decided by revenue officers on a paper enquiry, not by a Claims Tribunal on an inquiry under section 168. There is nobody to sue, so there is no lis, and the Act sends the claim to the district administration instead.

Section 162: the golden hour

"Golden hour" is defined in section 2(12A), inserted with effect from 1 September 2019, as the time period lasting one hour following a traumatic injury during which there is the highest likelihood of preventing death by providing prompt medical care.

Sub-section (1). Notwithstanding the General Insurance Companies (Nationalisation) Act 1972 or any other law, the insurance companies carrying on general insurance business in India shall provide for the treatment of road accident victims, including during the golden hour, in accordance with the Act and the schemes made under it.

Sub-section (2). The Central Government shall make a scheme for the cashless treatment of victims of accidents during the golden hour, and the scheme may contain provisions for the creation of a fund for such treatment.

This is the one place in the Act that treats the accident as a medical emergency rather than as a dispute about money. It does not depend on who was at fault, on whether the vehicle was insured, or on whether the vehicle was identified.

Where the money sits. The Central Motor Vehicles (Motor Vehicle Accident Fund) Rules 2022 divide the Motor Vehicle Accident Fund into an Account for Insured Vehicles, an Account for Uninsured Vehicles or Hit and Run Motor Accident, both for cashless treatment under the section 162 scheme, and a Hit and Run Compensation Account for compensation under section 161.

Section 163: no double recovery

Sub-section (1). Payment under section 161 is subject to the condition that if any other compensation, or any amount in lieu of or in satisfaction of a claim for compensation, is awarded or paid for the same death or grievous hurt under any other provision of this Act or any other law or otherwise, so much of it as equals what was paid under section 161 shall be refunded to the insurer.

Sub-section (2). Before awarding compensation for an accident involving death or bodily injury arising out of the use of a motor vehicle under any provision other than section 161 or any other law, the Claims Tribunal, court or other authority shall verify whether compensation has already been paid under section 161 or an application is pending, and shall

• (a) if it has been paid, direct the person liable under its award to refund the required amount to the insurer;
• (b) if an application is pending, forward the particulars of the compensation awarded to the insurer.

Explanation. An application under section 161 is deemed pending, if it has been rejected, till the date of rejection, and in any other case till the date compensation is paid in pursuance of it.

This is the section 168(1) now speaks of, "subject to the provisions of section 163". Before 1 April 2022 the same duty sat in section 162 and the cross-reference in section 168 was to that number.

Sections 164C and 164D: the rules

Section 164C. The Central Government may make rules to carry out Chapter XI, including the form of the accident information report under section 159 and the time and manner of submitting it, the form for information under section 160, the higher amount of compensation for death under section 161(2)(a), the sum payable as interim relief under section 161(4)(a), the procedure for payment of compensation under section 164(1), the sources for the section 164A scheme, and the income, beneficiaries, maximum liability and management criteria for the Fund under section 164B.

Section 164D. The State Government may make rules for the rest of the Chapter, other than the matters specified in section 164C, including the other authority under section 147(5).

The division is worth a line in an answer: the insurance and compensation Chapter is centrally administered, so the Centre makes its rules, while the Claims Tribunal Chapter is run by the States, so section 176 gives the State the rules for sections 165 to 174.

A worked example

Bhaskar is knocked down at night by a truck that does not stop and is never traced, and dies in hospital two days later.

Where does the family apply? Not to the Claims Tribunal. In Form I to the Claims Enquiry Officer of the sub-division or taluka in which the accident took place, under the Scheme of 2022.

How much? Two lakh rupees for death under section 161(2)(a), or such higher amount as the Central Government has prescribed.

How long should it take? A Form II report within one month, sanction within fifteen days of that report, and payment by the General Insurance Council within fifteen days of the sanction order, extendable by thirty days for reasons recorded.

Who paid for the emergency surgery? The cashless treatment scheme under section 162, funded from the Account for Uninsured Vehicles or Hit and Run Motor Accident; and the Claims Settlement Commissioner deducts the hospital's claim from the compensation sanctioned.

A year later the truck is traced and the Tribunal awards eighteen lakh. By section 163(2)(a) the Tribunal must first verify what was paid under section 161, and direct the person liable under its award to refund that amount to the insurer.

And if the vehicle had been traced from the start? Then it is not a hit and run motor accident at all, section 145(d), and the ordinary claim under section 166 lies, with the fixed sum under section 164 available without proof of fault.

What it does NOT mean

It is not a claim against anybody. There is no identified owner, driver or insurer; the money comes from the Fund.

It is not decided by a Tribunal. Revenue officers decide it under the Scheme.

The golden hour scheme is not limited to hit and run cases. Section 162 covers road accident victims generally, and the Fund has a separate account for insured vehicles.

The hit and run sum is not extra. Section 163 requires it to be refunded out of any later award.

The identity of the driver is not the test. Section 145(d) speaks of the identity of the vehicle.

Quick revision

1. Section 145(d): a hit and run motor accident is one where the identity of the vehicle cannot be ascertained in spite of reasonable efforts.
2. Section 161: two lakh rupees for death, fifty thousand for grievous hurt, or higher sums as prescribed, under a scheme made by the Central Government; contravention of the scheme is punishable with up to two years' imprisonment, or fine of twenty-five thousand to five lakh rupees, or both.
3. The Compensation to Victims of Hit and Run Motor Accidents Scheme 2022, in force from 1 April 2022, supersedes the Solatium Scheme 1989: Form I to the Claims Enquiry Officer, Form II report within a month, sanction in Form III within fifteen days, e-payment by the General Insurance Council within fifteen days.
4. Section 2(12A): the golden hour is the hour following a traumatic injury during which there is the highest likelihood of preventing death by prompt medical care.
5. Section 162: insurers must provide for treatment including during the golden hour, and the Central Government shall make a cashless treatment scheme which may create a fund.
6. Section 163: the section 161 payment is refundable to the insurer out of any later compensation, and a Tribunal must verify and direct the refund before awarding.
7. Sections 164C and 164D: Central and State rules for Chapter XI; contrast section 176, which gives the State the rules for sections 165 to 174.

Test yourself

1. What compensation is payable where the vehicle causing the accident cannot be identified? A hit and run motor accident is defined by section 145(d) as an accident arising out of the use of a motor vehicle or motor vehicles the identity whereof cannot be ascertained in spite of reasonable efforts. Section 161 requires the Central Government to provide for paying compensation in respect of death or grievous hurt resulting from such accidents, and fixes the sums at two lakh rupees for death and fifty thousand rupees for grievous hurt, or such higher amounts as the Central Government may prescribe. The machinery is a scheme under section 161(3), which may be administered by the Central Government or the General Insurance Council, and which may provide for interim relief, for punishment of its contravention with imprisonment up to two years or fine between twenty-five thousand and five lakh rupees or both, and for delegation of functions.

The scheme in force is the Compensation to Victims of Hit and Run Motor Accidents Scheme 2022, made in supersession of the Solatium Scheme 1989 and effective from 1 April 2022. Under it the claim is made in Form I to the Claims Enquiry Officer, a Sub-Divisional Officer or Tehsildar of the sub-division where the accident took place, who enquires and reports in Form II within a month to the Claims Settlement Commissioner, the District Magistrate or Collector, who sanctions within fifteen days in Form III, whereupon the General Insurance Council pays electronically within fifteen days.

2. What is the golden hour, and what does the Act require in respect of it? Section 2(12A), inserted with effect from 1 September 2019, defines the golden hour as the time period lasting one hour following a traumatic injury during which there is the highest likelihood of preventing death by providing prompt medical care. Section 162(1) provides that, notwithstanding the General Insurance Companies (Nationalisation) Act 1972 or any other law, the insurance companies carrying on general insurance business in India shall provide for the treatment of road accident victims, including during the golden hour, in accordance with the Act and the schemes made under it; and section 162(2) requires the Central Government to make a scheme for the cashless treatment of victims during the golden hour, which may contain provisions for the creation of a fund for such treatment. The Central Motor Vehicles (Motor Vehicle Accident Fund) Rules 2022 give effect to this by dividing the Motor Vehicle Accident Fund into an Account for Insured Vehicles and an Account for Uninsured Vehicles or Hit and Run Motor Accident, both for cashless treatment under section 162, besides a Hit and Run Compensation Account for compensation under section 161. The obligation does not depend on fault, on the vehicle being insured, or on the vehicle being identified.

3. What happens if a hit and run victim is later compensated by a Claims Tribunal? Section 163 prevents double recovery. By sub-section (1) the payment of compensation under section 161 is subject to the condition that if any other compensation, or any amount in lieu of or by way of satisfaction of a claim for compensation, is awarded or paid in respect of the same death or grievous hurt under any other provision of the Act or any other law or otherwise, so much of it as equals the amount paid under section 161 shall be refunded to the insurer. By sub-section (2) the Claims Tribunal, court or other authority must, before awarding compensation for an accident involving death or bodily injury arising out of the use of a motor vehicle, verify whether compensation has already been paid under section 161 or whether an application is pending; if it has been paid, it must direct the person liable under its award to refund the amount to the insurer, and if an application is pending, it must forward the particulars of its award to the insurer. The Explanation provides that an application is deemed pending, if rejected, till the date of rejection, and otherwise till the date of payment. This is the section to which section 168(1) is now expressly made subject.