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S.O. 440(E) - (Dated June 12, 1989):- In exercise of the powers conferred by sub-section (1) of Section 163 of the Motor Vechicles Act, 1988(59 of 1988), the Central Government hereby makes the following Scheme for the payment of compensation to the victims of hit-and-run motor accident, namely:-

  1. Short title and commencement:-
    1. This Scheme may be called the Solation Scheme, 1989.
    2. It shall come into force on the First day of July, 1989.

  2. Definitions:- In the scheme unless the context otherwise requires,
    1. "Act" means the Motor Vechicles Act, 1988(59 of 1988):
    2. "Claims Enquiry Officer" means the Sub-divisonal Officer, Tahsildar, or any other officer in charge of a revenue sub-division or a taluka in each Revenue District of a State or such other officer not below the rank of Sub-divisional Oficer or a Tahsildar, as may be specified by the State Government.
    3. "Claims Settlement Commisioner" means the District Magistrate, the Deputy Commissioner, the Collector or any other officer-in-charge of a Revenu District in a State appointed as such by a State Government;
    4. "Clause" means clause of this Scheme;
    5. "District-level Committee" means a Committee set up under Clause 11;
    6. "Form" means a Form annexed to the Scheme;
    7. "Standing Committee" means a Committee set up under Clause 3;
    8. "Transport Commissioner" means an officer appointed as such by the State Government and included the Director of Transport or the Controller of Transport, appointed by the State Government.

  3. Standing Committee :-
    1. There shall be a Standing Committee consisting the following memebrs, namely:-
      1. Joint Secretary (Transport) ...Chairman
      2. Joint Secretary(Insurance) ....Member
      3. General Manager, General Insurance Corporation ...Member
      4. General Manager of each of Insurance Companioes for the time being carying on general insurance business in India .. Member
      5. Transport Commissioners, one each from three States, nominated by the Central Government by rotation ...Member
      6. Director/Deputy Secretary(Finance Division) Ministry of Surface Transport .... Member
      7. An Oficer of General Insurance Cor[oration, of the rank of Deputy General Manager (Accounts) .....Member-Secretary
    2. The person nominated as member by virtue of an office shall cease to be a member when he ceases to hold that office.
    3. The term of office of the members nominated under sub-clause (a)of Clause (1) shall be for a period of one year.

  4. Remuneration of members of Standing Committee:- A member shall and be paid any remuneration, except travelling and daily allowance at the rates admissible to him and be paid from the source he draws salary.

  5. Powers and functions of the Standing Committee:- The Standing Comittee shall,-
    1. periodically review the working of the Scheme and its implementation and direct corrective steps, wherever necessary.
    2. consider the issue raised in the report of the Distrcit level Committee and provide guidance or directions,wherever called for;
    3. frane regulations for the conduct of business by Standing Committtee and District-level Committee.

  6. Meeting of the Standing Committee:- The Standing Committee shall meet at such time, date and at such a plce as the Chariman may, from time to time, appoint in this behalf. Provided that the Commitee shall meet at least twice a year.

  7. Quorum :- Not less than three memebers shall form a quorm: Provided that if at any meeting there is no quorum, the Chariman nmay adjourn the meeting to a date not less than seven days later, informing the members present and sending notices to other members that he proposes to dispose of the business at the adjourned meeting, whether there is a quorum or not and he may thereupon dispose of the business at such adjourned meeting.

  8. Decision by majority:- Every matter shall be determined by the majority of votes of the members present and voting and in case of equality of votes, the Chairman shall have a casting vote.

  9. Notice of meeting:-
    1. Notice shall be gicen by the Member-Secretary to every member of the time, date and place fixed for ech such meeting at least seven days before such meeting and ech member shall be furnished with a list of business to be disposed of at the said meeting:

      Provided that when an urgent meeting is called by the Chariman, such action shall not be necessary. However, Member-Secretary shall send an intimation to ech memmber.

    2. No business which is not on the list of business shall be considered at a meeting without the permission of the Chariman.

  10. Minutes of the meeting:- The proceedings of each meeting of the standidng Committee shall be cirulated to all membes and thereafter recorded in a Mimu Book which sall be kept as permanetn record. The record of the proceedings of each meeting shall be sigened by the Chairman.

  11. District level Committee:
    1. There shall be a District level Committee in the district consisting of the followisdng members, namely:-
      1. Claims Settlement commisioner ... Chairman
      2. Claims Enquiry Officer, nominated by the State Government ... Member
      3. The Regional Transport Officer or any other officer of Motor Vechicles Department as nominated by the State Government ...Member
      4. Any member of the public or, a voluntary organisation connected with the road safety aspects nominated by the Chairmen ...Member
      5. Divisonal Manager of the Insurance Company ... Member-Secretary
    2. A person nominated as a member by virtue of an office shall cease to be member when he ceaes to hold that office.
    3. The term of office of the members nominated under Items (b), (c) and (d) of sub-clause (1) shall be determined by the State Government]

  12. Remuneration of members of the District level Committee:- A member shall not be paid any remuneration except travelling and daily allowance at the rate admissible to him in his respective department and be paid from the source he draws salry. A member nominated under Clause (d) shall be paid travelling allowance/dearness allowance by General Insurance Coporation, at the rate as may decided by the General Insurance Coporation.

  13. Powers and functions of Ditrct Level Committee:- The District level Committee shall undertake all fucntions connected with the implementation of the scheme at the distrct level. It shall also perform functions such as,
    1. to evaluate the progress of implementation of the Scheme in the concerned district and take corrective steps, wherever necessary;
    2. to submit a report on quarterly basis to the Stabding Committee, The report shall inter alia include statistics monthwise, about the claim application received, awarded, pending and reasons for pendecy;
    3. to keep close liasion with other authorities in the district so as to enure that the Scheme gets adequate publicity;
    4. to provide guidance/clarifications to concerned authorites whever called for

  14. Meeting ofthe District level Committee:- The Distrct level Committee meet at such time-date and such place, within the concerned District itself, as Chairman may, from time to time, appoint in this behalf: Provided that the Committee shall meet at least once in each quarter.

  15. Quorum:- Notless than two members shall foprm a quorum.

  16. Decision by majority:- Every matter shall be determined by a majority of the members present and voting. Inc case of equality of votes, Chairman shall have casting vote.

  17. Notice of meeting:-
    1. Notice shall be given by the Member-Secretary to each member of the time, date and place fixed for the meeting the least seven days before such a meeting and each member shall be furnished with a list of busines to be disposed of at the said meeting. Provided that when an urgent meeting is called by the Chairman, such notice shall not be necessary. However, Member-secretary shall send an intimation to each member.
    2. No business which is not on the list of business shall be considered at a meeting without the permission of the Chariman.

  18. Minutes of teh meeting:- The proceedings of ech meeting the 'District level Committee" shall be circulatd to all members and thereafter recorded in a minute Book which sall be kept as a permanent record. The record of the proceeding of each meeting shall be signed by the Charirman.

  19. Nomination of insurance company:- General Insurance Corporation shall nominate any of its ofice or an insurance company in ech Distrct for settlement of claims under Section 161 of the Act and of this Scheme.

  20. Procedure for making the claim application:-
    1. The applicant shall submit an application seeking compensation under this Schme in Form I along with duly filled in discharge receipt in the Form II and the undertaking in Form V to the Claims Enquiry Officer of the Sub_Division or Taluka in which the accident takes place.
    2. An application under Clause(1) shall be made within a period of six months from the date of the accident: Provided that an application made after six months but not after 12 months from the date of the accident may be accepted by the Claims Enquiry Officer, if he is satisfied that there are resonable grounds to condonet the delay.
    3. Where the Claims Enquiry Officer does not accept the grounds advanced by the applicant, he shall record speking orders and communicate to the application reasons for not accepting the cliam application.

  21. Procedure to be followed by the Claims Enquiry Officer :-
    1. On receipt of claims application, the Claims Enquiry Officer shall immediately obtain a copu of the FIR , inquest report, post mortem report or certificate of injury, as the cae may be, from the concerned authoriteis and hold enquiry in respect of cliams arising out hit and run motor accidents.
    2. It shall be the duty of the Claims Enquiry Officer--
      1. to decide as to who are the rughtful claimants, where there more than one claimnats;
      2. to submit , as early as possible, and in any case within a period of one month from the date of receipt of apliation a report in Form-III along with duly discharged receipt in Form-II and the undertaking in Form-V along with his own recommendtion.
    3. Where the Claims Settlement Commisioner has returned any report to the Claims Enquiry officer for further enquiry under sub-clause(2) of Clause 22, the Class Enquiry Officer shall make such additional enquiries as may be necessary and resubmkt the report to the Claims Settlement Commissioner within 15 days for final order.

  22. Sanctioning of claims:-
    1. On receipt of report of the Claims Enquiry Officer, the Claims Settlement commissioner shall sanction the claim, as far as possible, within a period not exceeding fifteen days from the date of receipt of such report and communicate the sanction order in Form-IV along with duly discharge receipt in Form_II and the undertaking in Form _ V to the nominated officers of the insurance company, with a copy to the following.
      1. the Claims Enquiry Officer;
      2. the claimant ;
      3. the concerned Motor Accident Claim Tribunal;
      4. the concerned Transport Commossoner;
      5. general Insurance Corporation headquaters;
    2. Where the Claims Settlement Commissioner has any doubt in respect of the report submitted by the Claims Enquiry Officer for further enquiry , indicating the specific points on which the enquiry is to be made.

  23. Payment of compnesation:-
    1. In the case of claims arising out of the death, the paymebnt shall be made to legal representatives of the deceaed, as decided by the Claims Enquiry Officer.
    2. In the case of cliams arising out of grievous hurt, the payment shall be made to the person injured.
    3. The nominated office of the inurance company, immediately on receipt of the snction order in Form_IV together with discharge receipt in Form-II and the undertaking the Form -V shall make the payment to the claiment and dispatch a cheqy\ue/demand draft to the claimant through regidtered post AD and simultaneously send intimation to all the concerned authorities to whom the copy of the sanction orer is endorsed.
    4. The payment to the claimant by the insurane cimpany shall be made within 15 days frim the date of receipt of the sacntion order together with discharge receipt and wherever dely occurs, reasons therefore shall be explained to the Claims Settlement Commisioner.
    5. Regisetred letters containg cheqye/demand draft, if returned undelivered from claiments shall be placed before the Claims Settlement Commisioner for further directions.
    6. The nominated officer of the insurance company shall furnish monthly return giving number and the date of the sanction order, date of receipt of sanction order, payments made, sanction order pending for payment , to the Claims Setlllement Commisioner with a copy to Claims Enquiry Officer and General Insurance corporation Headquarters, Bombay.

  24. Annual report:- The General Insurace Coporation shall prepare to place annual report ont he working of the Schmeme before the Standing Committee and also forward a copy to the Central Government

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