Supreme Court pulls up Centre over "unannounced" motor accident victim compensation scheme

The Supreme Court on Friday expressed disapproval over the Central government’s quiet rollout of a critical welfare measure for motor accident victims, terming the newly framed Compensation to Victims (Interim Relief) Scheme, 2026 an "unannounced law."

A Bench of Justices JB Pardiwala and KV Viswanathan observed that beneficial social legislation is rendered meaningless if the general public remains completely unaware of its existence.

“This is an unannounced law. People should know because it’s a beneficial piece of legislation. Common man would not come to know,” the Bench remarked, directing the Union government to launch a widespread publicity campaign to inform citizens of their rights under the new rules.

The issue arose during a contempt petition alleging non-compliance with an April 28, 2025 order. The Court had previously directed the Centre to establish a statutory mechanism under Section 164A of the Motor Vehicles Act to ensure swift interim financial relief to road accident victims and their families.

During today's hearing, Additional Solicitor General (ASG) Vikramjit Banerjee informed the Court that the Central government had indeed framed the scheme, titled the Compensation to Victims (Interim Relief) Scheme, 2026. Drawing attention to Clause 6, the ASG submitted that a letter had already been dispatched on February 23 to Chief Secretaries of all States to circulate the new guidelines.

However, the revelation caught both the applicant (appearing in person) and the amicus curiae entirely by surprise, as neither had any prior knowledge that the scheme had already been framed and dispatched.

Beyond the lack of publicity, the amicus curiae and the applicant also flagged that the new scheme applies exclusively to insured motor vehicles where the insurance company disburses compensation. They pointed out that the scheme leaves victims of uninsured motor vehicles unprotected, where the driver or owner of the vehicle is directly liable to pay damages.

Taking note of the submissions, the Supreme Court directed the Union to ensure the scheme is given wide publicity so that its benefits reach the public at large.

"We want the government to ensure that people at large come to know about this Compensation Scheme 2026. People should know because it’s a beneficial piece of legislation," the Court recorded in its order.

The Bench has now asked the Central government to present a concrete operational plan by the next date of hearing, detailing how it intends to effectively roll out, enforce and publicise the scheme across the country.

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