The government has put forward a new scheme to provide timely compensation to road accident victims and their families. As per the proposal, families of those who lose their lives in road accidents will receive ₹2 lakh, while those who suffer grievous injuries will be entitled to ₹1 lakh. It is aimed at ensuring that accident victims are not left waiting for years in courts to receive basic financial support.
The proposal has been submitted to the Supreme Court, which has long pressed the government to create a structured compensation plan. Many families currently face prolonged battles in Motor Accident Claims Tribunals, often with little success. For families who lose their only breadwinner, the financial burden can be overwhelming. The government’s relief scheme seeks to provide an assured minimum support without unnecessary delay.
The plan is based on Section 164 of the Motor Vehicles Act, which was amended in 2019. It requires that fixed compensation be paid in cases of death or grievous injury caused by road accidents. The Ministry of Road Transport and Highways (MoRTH) has finalized the scheme and presented it for the Supreme Court’s approval. Once cleared, it will be implemented nationwide.
One of the major changes is that victims or their families will not have to prove who was at fault in the accident. This no-fault clause is expected to cut down on disputes that usually delay compensation. Payments will be processed through a centralized fund managed by the ministry.
Even with this, concerns remain. Senior advocates appearing in the case pointed out that ₹2 lakh may be too little for families who lose their sole earner. They noted that funeral expenses and the cost of supporting dependents far exceed the proposed amount. Similarly, the ₹1 lakh aid for grievous injuries may not cover even the initial weeks of hospital bills. The Supreme Court has asked the government to reconsider whether the amounts should be revised upward.
India records more than 4.6 lakh road accidents every year, resulting in nearly 1.5 lakh deaths and about 3 lakh cases of serious injuries. These staggering figures underline the urgent need for a fair compensation system. A large share of victims are daily wage workers, migrant labourers, or young students whose families struggle to meet medical costs or survive without an income. In such cases, direct government compensation becomes critical.
The scheme also promises to ease the pressure on Motor Accident Claims Tribunals. With a fixed relief amount available quickly, many families may choose not to pursue lengthy litigation, freeing up court time for complex cases. This could speed up justice delivery and reduce the enormous backlog of claims pending across the country.
However, experts stress that financial compensation is only one part of the solution. Road safety in India remains a major challenge. Poor traffic discipline, lack of enforcement, and bad road design continue to cause accidents. Emergency medical care is often delayed, worsening survival chances for victims. Analysts say that while compensation is necessary, stronger safety measures are equally important to prevent accidents in the first place.
The Supreme Court has given the government time until October to finalize the proposal and address the concerns raised. If the scheme is approved, it will represent an important step in recognizing the rights of accident victims and their families. For many households’ facing sudden tragedy, this support could provide a crucial lifeline in their darkest hours.
For now, road safety advocates and affected families are watching closely, hoping that the government’s plan not only offers immediate relief but also sparks stronger action to make Indian roads safer.
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