₹80,000 crore in motor accident claims stuck as compensation system fails victims: Report

Mumbai: An estimated ₹80,000 crore worth of motor accident compensation claims are currently locked in pending cases across India, according to CARS24’s Crashfree India report “Justice Unserved: Why Most Crash Victims Don’t Get Compensated in India.”

The report highlights that over 10.46 lakh cases are pending before Motor Accident Claims Tribunals (MACTs), pointing to deep structural delays in the system meant to provide financial relief to road crash victims.

Despite an estimated 25,000 eligible hit-and-run crashes annually, only 205 claims were filed in FY23, the report notes. Filings increased to around 3,000 in FY24, but still represent a small fraction of those eligible—underscoring a significant gap between entitlement and access.


Low awareness remains a critical barrier. Many victims are not informed about compensation schemes at key touchpoints such as hospitals and police stations, even though authorities are mandated to provide this information. As a result, a large number of eligible claimants never enter the system.

For those who do, delays are substantial. The report estimates that compensation claims take an average of 3.6 years to be resolved, with some cases stretching well beyond a decade due to prolonged litigation and insurer appeals.

Procedural complexity further slows the process. Nearly 90% of pending hit-and-run claims are stalled due to documentation gaps, reflecting the burden placed on claimants to produce multiple records—from FIRs to medical and income proofs—often within strict timelines.

The impact is particularly severe on low-income households. Without formal documentation or access to legal support, many claimants struggle to navigate the process, leading to under-compensation or abandoned claims. In several cases, families are forced into debt or asset sales while waiting for payouts.

Institutional fragmentation adds another layer of inefficiency. Limited coordination between police, insurers and tribunals, along with gaps in digital integration, means that claims processing often depends on manual follow-ups rather than automated systems.

In the absence of structured guidance, informal intermediaries frequently step in to assist victims—sometimes at a cost—further reducing the compensation that ultimately reaches them.

The report concludes that while India’s legal framework for crash compensation is comprehensive, weak implementation, low awareness and systemic inefficiencies continue to prevent timely and equitable access for most victims.