Supreme Court Questions Exclusion of Uninsured Vehicles From Proposed Road Crash Relief Scheme

Supreme Court Seeks Clarity on Scheme Scope

The Supreme Court has asked the central government to explain why uninsured vehicles are excluded from a newly formulated interim financial relief scheme for road crash victims. A bench comprising Justices J.B. Pardiwala and K.V. Viswanathan raised the query while examining the details of the "Compensation to Victims (Interim Relief) Scheme, 2026."

The proposed framework is designed to provide interim financial assistance of Rs 2 lakh to the families of individuals who die in road accidents, and Rs 1 lakh for those who sustain grievous injuries. However, the current draft of the scheme limits these payouts strictly to accidents involving insured vehicles.

Background and Official Stance

The Supreme Court had previously directed the Union road transport ministry in April 2025 to formulate the relief framework. Government officials informed the bench that the ministry shared the draft scheme with states and union territories on February 23. Ministry representatives explained that the scheme was framed under specific provisions of the Motor Vehicles (MV) Act that deal with insured vehicles. According to officials, if an offending vehicle is uninsured, victims or their legal heirs must pursue compensation through the Motor Accidents Claims Tribunal (MACT).

Officials clarified that Section 164 of the MV Act requires vehicle owners or insurers to pay Rs 5 lakh for death and Rs 2.5 lakh for serious injury under "no-fault liability" provisions, where claimants do not need to prove negligence. The proposed interim amounts of Rs 2 lakh and Rs 1 lakh are intended to provide immediate financial support, while final compensation is determined later through MACT proceedings.

Directives on Public Awareness

During the proceedings, the bench noted that the interim relief scheme has neither been formally notified nor adequately publicized. The court directed the government to take steps to increase public awareness so that citizens understand their rights to seek interim compensation. Clause 6 of the scheme outlines that applicants or legal heirs of the deceased must apply through a designated online portal, disclosing details of any claims already filed or pending before a MACT.

Practical Implications and Verification

• What is Confirmed: The Supreme Court has sought a formal explanation from the central government regarding the exclusion of uninsured vehicles from the draft Compensation to Victims (Interim Relief) Scheme, 2026. The bench has also ordered officials to publicize the scheme to ensure public awareness.
• What Remains Unknown: The final response of the central government and whether the eligibility criteria under the scheme will be modified to include accidents involving uninsured vehicles are yet to be determined.
• User Impact: Families affected by road accidents involving insured vehicles may utilize the upcoming online portal for interim relief, while those affected by uninsured vehicles must rely on traditional MACT channels.
• How to Verify: Readers can review the official developments and legal proceedings through the [Times of India Source Report](https://timesofindia.indiatimes.com/india/why-are-uninsured-vehicles-not-part-of-crash-relief-scheme-supreme-court/articleshow/135100900.cms).