Non Life Insurance
What happens if a vehicle flees after injuring a third party and its identification cannot be traced?
This Section of the Act provides for payment of compensation (Solatium) in respect of the death of any person resulting from a hit and run motor accident, a fixed sum of Rs.8,500 and in respect of grievous injury to any person, a fixed sum of Rs. 2,000.
This compensation is payable out of a 'Solatium Fund' established by the Central Government and it consists of 70% contribution of the General Insurance Corporation of India and 30% by the Central and State Governments.