Road Accident Compensation in India: How Much Relief You Can Claim on Expressways, National and State Highways
Road accidents remain one of the leading causes of sudden fatalities in India. Every day, families lose their sole breadwinners on highways, expressways, and city roads. In such tragic moments, many dependents wonder if there is any financial assistance available—especially when the deceased had no life insurance cover. The answer is yes. India has multiple laws, government schemes, and compensation mechanisms designed to support road accident victims and their families.
This article explains how much compensation can be claimed, the legal provisions, and the process for receiving relief.
Legal Framework for Road Accident Compensation
India has continuously updated its laws to provide better support to accident victims. The Motor Vehicles Act, 1988 was the first comprehensive law to cover compensation. Under the original framework, families of victims received ₹25,000 in case of death and ₹12,000 for serious injuries. However, with inflation and rising costs of living, these amounts proved insufficient.
Later, the Motor Vehicles (Amendment) Bill, 2016 was introduced to improve compensation and streamline the claims process. Though it enhanced some provisions, victims’ families still found the payouts inadequate. Recognizing this, the government introduced the Solatium Scheme, 2022, which significantly increased the relief amounts.
Solatium Scheme 2022: Increased Relief for Victims
Under the revised Solatium Scheme, the compensation for hit-and-run cases was raised to:
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₹2,00,000 in case of death
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₹50,000 in case of serious injury
This marked a major step in ensuring that accident victims’ families receive timely and meaningful financial help. Importantly, the amount is directly transferred to the claimant’s bank account, ensuring transparency and quick access to funds.
Where and How Compensation is Provided
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On Expressways
If an accident occurs on an expressway, victims are covered under the Motor Vehicles Accident Fund. Families of deceased persons are entitled to ₹2 lakh, while seriously injured individuals can claim ₹50,000. -
On National Highways and State Highways
Compensation is provided under the Motor Vehicles Act.-
₹2 lakh is paid in case of death
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₹50,000 for serious injuries
Additionally, victims may also get cashless medical treatment in empanelled hospitals. The insurance company of the involved vehicle, or its owner, bears this compensation.
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In Hit-and-Run Cases
When the driver flees and cannot be identified, the case is treated as a hit-and-run accident. In such cases, families cannot directly approach the insurance company. Instead, the claim is processed through the Motor Vehicles Accident Fund, with compensation fixed at ₹2 lakh for death and ₹50,000 for injuries.
Legal Provisions: Sections 163A and 166
The Motor Vehicles Act has two important provisions for accident claims:
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Section 163A: No-Fault Liability
Here, compensation is paid regardless of whose fault caused the accident. This ensures that poor or illiterate families do not get caught in lengthy legal battles. -
Section 166: Fault-Based Liability
In these cases, the claimant must prove that the accident occurred due to the negligence of another party. Compensation is then recovered from the at-fault driver’s insurance company.
Additional Support and Insurance Benefits
Apart from government compensation, families may also get support through:
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Prime Minister Jeevan Jyoti Bima Yojana (PMJJBY), which offers low-cost life insurance.
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Labour welfare schemes and labour cards, which provide additional financial relief.
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Free legal aid through Legal Services Authorities and NGOs, so victims do not always need to hire private lawyers.
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Motor Accident Claims Tribunal (MACT), which ensures speedy hearings for compensation claims.
Key Takeaway
Families of accident victims should know that insurance is not mandatory for receiving compensation. Whether the accident occurs on a highway, expressway, or in a hit-and-run case, there are legal provisions and government-backed schemes that guarantee financial support.
While no amount of money can replace a loved one, these measures are designed to ease the financial burden on grieving families and ensure that they receive justice without unnecessary delays.
