Hit and Run Car Accident Insurance Claim & Compensation in India

A hit-and-run accident can be one of the most distressing experiences for anyone involved. Victims are often left to deal with injuries, emotional shock, and unexpected financial difficulties. In such cases, seeking justice or financial support through regular channels becomes nearly impossible. To address this issue, the Government of India has implemented specific provisions under the Motor Vehicles Act. These provisions ensure that people affected by hit-and-run incidents can still receive compensation through a structured insurance claim process.

Understanding how hit-and-run insurance claims and compensation work is essential, as it helps victims or their families know what kind of support is available, how to apply for it, and what to expect during the process. This framework is designed to provide timely financial relief and reduce the hardships caused by such unfortunate accidents.

What is a Hit and Run Case?

A hit-and-run case is defined as a situation where a vehicle causes injury, death, or property damage, and the driver leaves the scene without informing authorities or offering help. Since the offender is often unidentified, the Motor Vehicles Act provides a system of fixed compensation to assist victims or their dependents.

What are the Hit and Run Car Accident IPC Sections?

The Indian Penal Code (IPC) treats hit-and-run accidents as a punishable offence. Important sections include:

●      Section 279 IPC: Driving a vehicle rashly or negligently in a way that endangers human life.

●      Section 304A IPC: Causing death by negligence, including accidents where the responsible driver absconds.

●      Section 338 IPC: Causing grievous hurt by an act endangering life or personal safety.

●      Section 134 of the Motor Vehicles Act: Obligates the driver to provide aid to the injured and report the accident.

These laws ensure that offenders can be held accountable when identified.

Hit & Run Car Insurance Claim Procedure

Victims or their families can apply for a car insurance claim compensation under the Solatium Fund established by the government. The general steps are:

1. File an FIR at the nearest police station immediately after the incident.

2. Seek medical help and collect all treatment-related documents.

3. Submit Form I (application for compensation) at the Claims Enquiry Officer’s office in your district.

4. Provide supporting documents such as FIR, post-mortem report (in case of death), and hospital bills.

5. The authorities conduct an enquiry and verification.

6. Compensation is sanctioned by the Claims Settlement Commissioner after verification of the enquiry report submitted by the Claims Enquiry Officer.

Important Motor Vehicle Act Sections for Hit-and-Run Claims

The Motor Vehicles Act provides a framework to support victims in such cases:

●      Section 161: Defines hit and run accidents and establishes fixed compensation amounts.

●      Section 162: Sets up the Solatium Fund to disburse compensation.

●      Section 163: Defines the role of Claims Settlement Commissioners.

●      Section 134: Outlines the duties of drivers in case of accidents.

Who Benefits from Hit-and-Run Insurance Claims and How?

The following parties are eligible to benefit:

●      Victims of accidents: Injured individuals can receive fixed compensation for medical treatment.

●      Families of deceased victims: Dependents can claim financial support if the accident results in death.

●      Legal representatives: If the victim is deceased, legal heirs can file the claim on their behalf.

●      Hospitals providing treatment: Under the Government’s Cashless Treatment Scheme 2025, designated hospitals across India are mandated to provide free cashless treatment of up to ₹1.5 lakh within the first 7 days (including the golden hour and beyond), with reimbursement directly from the scheme.

Hit-and-Run Compensation Payments: Understanding the Details

Under Section 161 of the Motor Vehicles Act, the compensation is fixed, regardless of the victim’s income or the severity of injuries. Current compensation amounts are:

●      ₹2,00,000 in case of death due to a hit-and-run accident.

●      ₹50,000 for grievous injuries.[2] 

This payment is made from the Solatium Fund and is disbursed after proper verification by the Claims Settlement Commissioner. Additionally, the Cashless Treatment Scheme 2025 provides free treatment up to ₹1.5 lakh during the first 7 days, complementing the Solatium Fund compensation. The amount may be updated periodically by government notification.

For additional protection, Zurich Kotak provides specialised personal accident insurance plans that cover accidental death, permanent total or partial disability, hospitalisation, ambulance charges, weekly hospital cash benefits, and education grants for dependent children, offering comprehensive financial support beyond fixed government compensation.[3] 

How Is Hit-and-Run Compensation Calculated in India?

Compensation for hit-and-run cases is not based on loss of income or actual medical expenses, but on fixed amounts defined by law. The calculation process involves:

●        Determining whether the accident resulted in death or grievous injury.

●        Verification of the FIR and supporting medical or post-mortem reports by the Claims Enquiry Officer.

●        Sanctioning of the compensation by the Claims Settlement Commissioner after review of the enquiry.

This fixed-amount approach ensures timely relief for victims, though it may not always cover the full financial impact of the accident.

Conclusion

A hit-and-run insurance claim provides much-needed relief to accident victims and their families when the offender cannot be identified. With fixed compensation amounts, a defined application process, and provisions under the Motor Vehicles Act, the system ensures that victims receive timely support. Staying informed about your rights and the necessary steps can help you or your family secure compensation without unnecessary delays.

Frequently Asked Questions

1. How Much Compensation Can You Get in a Hit-and-Run Case?

Victims receive fixed compensation: ₹2,00,000 in case of death and ₹50,000 for grievous injury, under Section 161 of the Motor Vehicles Act. Additionally, the Cashless Treatment Scheme 2025 provides free hospital treatment up to ₹1.5 lakh for the first 7 days.

2. What is the process of a hit-and-run claim?

You need to file an FIR, seek medical treatment, and submit Form I with supporting documents to the Claims Enquiry Officer’s office. After enquiry and approval by the District-level Claims Settlement Commissioner, compensation is released.

3. What will happen in a hit-and-run case?

A case is registered under the relevant IPC and Motor Vehicle Act sections. If the driver is unidentified, victims or their families can claim compensation from the Solatium Fund. Identified offenders face strict legal penalties and immediate prosecution under the IPC and Motor Vehicle Act amendments.

4. How long does it take to receive compensation in this case?

Earlier, it could take a few months, but current reforms aim to settle cases within 30–45 days through district-level monitoring committees.

5. Can I file a hit-and-run claim without an FIR?

No, an FIR is mandatory to prove that the accident occurred and the offender absconded. Without an FIR, authorities cannot process a hit-and-run compensation claim under the Motor Vehicles Act.