JOIN USThe Rajya Sabha on Tuesday approved the Motor Vehicle Amendment Bill which seeks to raise compensation for death resulting from a hit and run accident to Rs 1 lakh and Rs 50,000 for the injured in such incidents.
Introducing the Bill, Road Transport and Highways Minister C P Joshi said: “The Centre intends to establish a fund to be known as “Solatium Fund” which shall be utilised for paying compensation to people dying or receiving grievous injuries in hit and run road accidents.”
The hike in compensation has been decided keeping in view the high inflation rate.
However, the Minister refuted the charges levelled by some Opposition members that the Bill was intended to benefit private insurance companies.
The minister said though casualties in road accidents are high in India, it is still much less than those in developed countries like US, UK and Germany.
He said his ministry was waiting for views from states on further strengthening traffic rules to cut down accidents substantially. Based on the comprehensive views, a separate comprehensive legislation would be brought in Parliament to regulate traffic rules violation.