Road crash victims struggle as Rs 80,000 crore compensation lies unpaid: Report

Mumbai: In a shocking disclosure, over Rs 80,000 crore in compensation meant for road crash victims remains unpaid across India, even as families continue to grapple with the aftermath of devastating crashes.

Besides, more than 10.46 lakh compensation cases are currently stuck in courts, exposing deep inefficiencies in a system designed to support victims.

For many families, delays in compensation translate into prolonged financial uncertainty.

The report suggests that the average compensation case takes approximately 3.6 years to resolve, while some cases extend much longer due to litigation and appeals.

According to a report by Cars24’s Crashfree India — “Justice Unserved: Why Most Crash Victims Don’t Get Compensated in India” — victims and their families are struggling to access the financial relief they are legally entitled to under the Motor Vehicles Act.

This data is also available on the Insurance Regulatory and Development Authority of India (IRDAI), the report states.

Even after tribunals pass compensation awards, accessing the funds remains a challenge.

In Mumbai alone, over Rs 459 crore lies unclaimed in Motor Accident Claims Tribunals (MACTs), highlighting the scale of the issue.

This is followed by Rs 361 crore in Goa and Rs 282 crore in Gujarat, with large sums stuck due to procedural hurdles and low awareness among beneficiaries.

Under the Hit-and-Run Compensation Scheme, families of victims whose offending vehicle cannot be traced are entitled to Rs 2 lakh in case of death and Rs 50,000 for grievous injury. However, the scheme remains significantly underutilised. In FY 2022–23 only 205 claims were filed nationwide and even after filings increased the following year, just 10 states and one Union Territory accounted for all recorded claims, indicating large geographic disparities in awareness and access.

“When I started speaking to road crash victims and their families as part of this research, what struck me most wasn’t just the hardship they had been through; it was the silence around them. Most conversations on road safety stop at prevention. That’s only solving for the visible part of the problem. The harder, less discussed reality begins after the crash, when families lose income overnight and timely financial support often turns into a long, exhausting struggle,” said Kesar Kanjhlia, Research Lead, Crashfree India.

According to him, post-crash compensation should be built into the system and not depend on how long victims can keep fighting. This gap in post-crash support, in helping victims and families navigate the legal and institutional maze that stands between them and their rightful compensation, is seldom documented or mapped. That is the white space Crashfree India is trying to fill.