Concept of Hit and Run Accident in Motor Insurance

Hit and Run Accident is a motor accident arising out of the use of a motor vehicle or motor vehicles the identity whereof cannot be ascertained in spite of reasonable efforts for the purpose. The Motor Vehicles Act, 1988 is a piece of social legislation and its provisions are designed to protect the rights of victims of road accidents.  In spite of the wide protection afforded by the provisions of the Act, there remain certain gaps in which the road victims may not have any remedies.

For the example, the identity of the motor vehicle causing the accident cannot be established and, as a result, the victim has no recourse to any legal remedies’ because the vehicle identity is not known, he cannot proceed against either the owner of the vehicle or the insurance company which had insured the vehicle.

Section 161 of the  M.V. Act  defines “hit and run motor accident” as accident arising out of the use of a  motor vehicle  the identity whereof cannot be ascertained in spite of  reasonable efforts for the purpose. This section provides for payment of following compensation for such accidents:

1. Death – Rs. 25000
2. Grievous hurt – Rs. 12500

As per the new M.V. Act, the payment of Compensation is made by G.I.C. and its subsidiaries.  The solatium is payable out of a “Solatium Fund” established by the Central Government with effect from 1st October, 1982.  It consi-sts 30% contributions from Central and State Governments and 70% from General Insurance industry.

Extracts from “Guide for Motor Insurance (IC-72)” by Dr. Rakesh Agarwal. Copyright of Sashi Publications, Kolkata www.sashipublications.com and www.bimabazaar.com