Motor Vehicle Accident Fund
The Motor Vehicles (Amendment) Bill, 2019 will amend the Motor Vehicles Act, 1988 has aimed to develop form a Motor Vehicle Accident Fund in the nation. The Motor Vehicles (Amendment) Bill requires the central government of India to constitute a Motor Vehicle Accident Fund which will be used to provide a uniform compulsory insurance cover to all road users in India.
What will the Motor Vehicle Accident Fund be used for?
- To provide treatment to any person injured in road accidents as per the golden hour scheme also defined in the Motor Vehicles (Amendment) Bill.
- To compensate the dependents and other representatives of a person who died in a hit and run accident.
- To provide compensation to any person grievously hurt in a hit and run accident.
- All other compensations to any other persons as prescribed by the central government.
How will be fund be created?
- The fund will be topped up by all payments of a specified nature as notified by the central government.
- All grants or loans made to the fund by the central government.
- Existing balance of the Solatium Fund (money already fund available under the Motor Vehicles Act, 1988 to provide compensation for hit and run accidents.
- All other sources as defined by the central government.
Why is it necessary?
Road accidents are a common occurrence on Indian roads which cause not only the loss of property and limb but also in some cases, unfortunately, the loss of life. While the compensation can not substitute for life, it can make the transition for the grieving family easier.