How Is Compensation Determined In Road Accident Cases? | Explained

Last Updated:June 30, 2025, 15:56 IST

In road accidents, Rs 5 lakh is paid if the vehicle is identified; Rs 2 lakh is paid for hit-and-run cases

If the vehicle is identified and seized by the police after an accident, the compensation process is managed by the Motor Vehicle Accident Claims Tribunal. (News18)

The compensation amount in road accident cases hinges on whether the vehicle involved is present at the scene. If the vehicle is identified and there is compelling evidence, the insurance company or vehicle owner is required to provide a minimum compensation of Rs 5 lakh to the deceased’s family.

What Happens In Hit-And-Run Cases?

In situations where the vehicle flees the scene and cannot be traced, known as ‘hit-and-run’ cases, the Transport Department’s scheme stipulates a maximum compensation of Rs 2 lakh.

According to Ram Babu, the District Transport Officer (DTO) of Rohtas district of Bihar, in hit-and-run cases, where the driver absconds and the vehicle remains unidentified, the dependents of the deceased receive Rs 2 lakh, and a maximum of Rs 50,000 is allotted for injuries.

To date, compensation has been awarded in 225 hit-and-run cases in Rohtas district.

How Is Compensation Processed When Vehicle Is Seized?

If the vehicle is identified and seized by the police after an accident, the compensation process is managed by the Motor Vehicle Accident Claims Tribunal.

In this instance, the victims file a claim in court, and the insurance company or vehicle owner provides a minimum compensation of Rs 5 lakh to the deceased’s relatives.

Motor Vehicle Claims Tribunal

In Rohtas district, the Motor Vehicle Claims Tribunal is situated in Dehri, where these cases are adjudicated by a retired judge.

Previously, individuals had to travel to Patna for such hearings. Now, motor accident cases from the entire Shahabad division are resolved in Dehri, which has significantly eased the burden on the affected families. So far, compensation has been awarded in four cases through this tribunal.

Location :

Bihar, India, India

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