On 10 April 2017, the Lok Sabha passed the Motor Vehicles (Amendment) Bill, 2016. Under the new provisions, the fixed compensation for death in a hit and run motor vehicle accident was increased from Rs 25,000 to what minimum amount?

Difficulty: Medium

Correct Answer: Rs 2 lakh or more

Explanation:


Introduction / Context:
Road safety reforms and amendments to the Motor Vehicles Act are important current affairs and policy topics. The Motor Vehicles (Amendment) Bill, 2016 introduced several changes to strengthen penalties and increase compensation for victims of road accidents, especially hit and run cases. This question tests whether you remember the specific new compensation amount for death in such cases.


Given Data / Assumptions:

  • The relevant legislation is the Motor Vehicles (Amendment) Bill, 2016.
  • The Lok Sabha passed it on 10 April 2017.
  • Earlier fixed compensation for death in hit and run cases was Rs 25,000.
  • The Bill raised this minimum amount and the options provide possible new amounts.


Concept / Approach:
One of the major objectives of the amendment was to provide more realistic compensation to victims and their families. For hit and run fatalities, the compensation was increased substantially to Rs 2 lakh. There were separate provisions for grievous hurt where compensation also increased but to a lower figure than for death. Remembering these numbers is useful not only for examinations but also to understand policy emphasis on road safety.


Step-by-Step Solution:
Step 1: Note that the question refers specifically to hit and run cases, not all road accidents. Step 2: Recall that under the amendment, compensation for death in hit and run cases increased from Rs 25,000 to Rs 2 lakh. Step 3: Remember that for grievous injury in hit and run cases, the compensation was raised from Rs 12,500 to Rs 50,000, which is a different figure. Step 4: Among the options, Rs 2 lakh or more matches the correct new minimum amount for death.


Verification / Alternative check:
You can verify by linking the pair of figures 25,000 and 2 lakh for death, and 12,500 and 50,000 for grievous injury. These pairs are commonly highlighted in exam articles on the Motor Vehicles (Amendment) Bill, 2016. Additionally, government press releases and insurance related articles also mention these revised compensation amounts, reinforcing the memory.


Why Other Options Are Wrong:

  • Rs 5 lakh or more: This amount is higher than what the amendment fixed as the standard hit and run death compensation, although there are separate provisions for maximum compensation limits in other accident cases.
  • Rs 10 lakh or more: This figure is associated with caps on certain insurance claims in other contexts, not with the fixed hit and run death compensation.
  • Rs 15 lakh or more: This is not the standard amount provided in the amendment for hit and run fatalities.
  • Rs 50,000 or more: This figure is close to the enhanced amount for grievous injury, not for death. Using it here would confuse the two different categories.


Common Pitfalls:
Many candidates mix up the figures for death and grievous injury. Another common mistake is to confuse the hit and run compensation amounts with caps on other types of motor accident claims. To avoid this, remember the simple phrase twenty five to two lakh for hit and run death, and twelve and a half to fifty thousand for hit and run injuries. Writing these number pairs in your revision notes can lock them in place.


Final Answer:
Under the Motor Vehicles (Amendment) Bill, 2016, the fixed compensation for death in a hit and run motor vehicle accident was increased from Rs 25,000 to Rs 2 lakh or more.

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