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Motor Vehicles Act, 1988

Compensation and Hit-and-Run Framework

The Motor Vehicles Act, 1988 (MVA) governs vehicle registration, driving licensing, traffic offences, and third-party liability. The Motor Vehicles (Amendment) Act, 2019 significantly enhanced penalties and introduced new provisions.

Key details
  • Section 161 (MVA): Provides for compensation from the Motor Vehicles Accident Fund for victims of hit-and-run accidents — ₹2 lakh for death and ₹50,000 for grievous hurt (a hit-and-run is defined as an accident where the vehicle's identity cannot be ascertained despite reasonable efforts).
  • Section 164B: Establishes the Motor Vehicle Accident Fund for payment to victims of road accidents pending recovery from the offender.
  • The 2019 amendment introduced enhanced penalties: drunk driving fines increased to ₹10,000 (first offence) and ₹15,000 (repeat); over-speeding fines increased substantially; third-party insurance made mandatory.
  • Third-party insurance is compulsory under Section 146 of the MVA; motor accident claims are adjudicated by Motor Accidents Claims Tribunals (MACTs).
In the news

Tracked since February 11, 2026 · last seen June 11, 2026 · updates as the daily brief publishes

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