Victim Compensation Schemes

Introduction

Victim compensation schemes are legal mechanisms through which monetary assistance is provided to victims of crime, or their dependants, to help them recover from physical, psychological, financial, or other harm caused by criminal conduct.

In India, victim compensation is primarily governed by Section 396 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which replaced Section 357A of the Code of Criminal Procedure, 1973 (CrPC). The objective is to ensure that victims receive support even where compensation cannot adequately be obtained from the offender.

Compensation may be relevant in cases involving:

• sexual offences;
• acid attacks;
• serious bodily injuries;
• death of the victim;
• trafficking;
• offences against children;
• rehabilitation of survivors; and
• other crimes causing substantial loss or injury.

1. Meaning of Victim Compensation

Victim compensation is financial assistance provided to a victim or eligible dependants because of harm resulting from a criminal offence.

Traditional criminal proceedings primarily focused on:

1. determining guilt;
2. punishing the offender; and
3. protecting society.

The modern approach also recognises the rights and rehabilitation needs of victims.

Compensation therefore serves a different purpose from punishment.

Punishment

Punishment is imposed upon the offender for committing the offence.

Compensation

Compensation is intended to provide financial assistance and rehabilitation to the victim.

A victim may therefore receive compensation even though the primary purpose of the criminal proceeding is prosecution of the accused.

2. Statutory Framework

Section 396 BNSS

Section 396 of the Bharatiya Nagarik Suraksha Sanhita, 2023 provides the statutory framework for victim compensation.

The State Government, in coordination with the Central Government, is required to prepare a scheme for providing funds for compensation to victims or their dependants who have suffered loss or injury because of a crime and require rehabilitation.

The provision also enables the District Legal Services Authority (DLSA) or State Legal Services Authority (SLSA) to determine the appropriate amount of compensation according to the applicable scheme.

3. When Compensation May Be Granted

Victim compensation may be available where:

• the offender cannot be identified;
• the offender cannot be traced;
• the offender has been acquitted but the victim nevertheless requires rehabilitation, where the statutory scheme permits it;
• the compensation recovered from the offender is inadequate; or
• the victim requires rehabilitation because of the injury caused by the crime.

The exact eligibility and amount depend upon the applicable State or Union Territory scheme and the facts of the case.

4. Role of Legal Services Authorities

The State Legal Services Authority and District Legal Services Authority play an important role in administering victim compensation.

Their functions may include:

• receiving applications;
• examining the circumstances of the victim;
• determining eligibility;
• assessing the extent of injury or loss;
• determining compensation under the applicable scheme;
• arranging interim compensation where applicable; and
• facilitating rehabilitation.

This provides a mechanism through which victims can obtain assistance without depending entirely upon recovery from the offender.

5. Interim Compensation

One important feature of victim compensation law is the possibility of interim compensation.

Interim compensation is intended to provide immediate financial assistance while the criminal proceedings or final assessment are still pending.

This is particularly significant where the victim has immediate expenses relating to:

• medical treatment;
• surgery;
• rehabilitation;
• counselling;
• accommodation;
• education;
• loss of income; or
• other essential needs.

The purpose is to prevent the victim from having to wait until the conclusion of a lengthy criminal proceeding before receiving assistance.

6. Compensation and Rehabilitation

Compensation is not merely a payment for the injury.

The broader objective is rehabilitation.

Depending on the applicable scheme, rehabilitation may involve assistance for:

• medical treatment;
• psychological counselling;
• education;
• vocational training;
• loss of earning capacity;
• disability-related expenses;
• accommodation; and
• other reasonable rehabilitation requirements.

7. Important Case Laws

1. Ankush Shivaji Gaikwad v. State of Maharashtra (2013)

The Supreme Court examined the provisions relating to compensation to victims under the CrPC.

The Court emphasised that courts should apply their mind to the question of compensation and should not treat compensation as an insignificant or purely discretionary afterthought.

Principle

Courts have a responsibility to consider victim compensation in appropriate criminal cases and should give proper consideration to the victim's loss and rehabilitation needs.

2. Suresh v. State of Haryana (2015)

The Supreme Court dealt extensively with the victim compensation framework.

The Court emphasised the importance of interim compensation, particularly where the victim requires immediate assistance.

Principle

Victim compensation should be approached as an important component of the criminal justice system, and interim assistance may be necessary to address urgent rehabilitation needs.

3. Laxmi v. Union of India (2014)

This case concerned acid attacks and the protection and rehabilitation of acid-attack survivors.

The Supreme Court addressed issues concerning regulation of acid sales and compensation for victims.

Principle

Victims of acid attacks require meaningful rehabilitation and financial assistance because of the serious and continuing physical and psychological consequences of the offence.

The case significantly contributed to the development of compensation protections for acid-attack survivors.

4. Nipun Saxena v. Union of India (2019)

The Supreme Court considered issues concerning victims of sexual offences and the need for confidentiality and victim-oriented legal protection.

The Court addressed the broader framework for dealing with victims of sexual offences, including compensation and rehabilitation.

Principle

Victim compensation must be implemented in a manner that respects the dignity, privacy and rehabilitation needs of survivors of sexual offences.

5. Delhi Domestic Working Women's Forum v. Union of India (1995)

The Supreme Court recognised the need for assistance and support to victims of sexual violence.

The Court emphasised that victims of sexual offences require access to legal assistance and mechanisms that address the consequences of the offence.

Principle

The criminal justice system should not focus exclusively on punishment of the offender; it must also address the needs and rights of victims.

6. Bodhisattwa Gautam v. Subhra Chakraborty (1996)

The Supreme Court recognised the possibility of granting interim compensation to a victim during the pendency of proceedings.

The Court treated financial assistance as an important aspect of providing meaningful relief to a victim.

Principle

Courts can use appropriate legal mechanisms to provide interim financial assistance where the circumstances justify it.

7. Mallikarjun Kodagali v. State of Karnataka (2019)

The Supreme Court examined the statutory recognition of victim rights under Indian criminal procedure.

The judgment recognised the victim as an important participant in the criminal justice process rather than merely a witness for the prosecution.

Principle

Victim-oriented provisions should be interpreted in a manner that meaningfully protects the rights and interests of victims.

8. Hari Singh v. Sukhbir Singh (1988)

The Supreme Court considered the compensation provisions under the CrPC and emphasised that compensation can provide meaningful relief to victims.

Principle

Criminal courts should appropriately consider compensation, particularly where the victim has suffered loss because of the offence.

8. State Victim Compensation Schemes

The central statutory framework is supplemented by compensation schemes formulated by individual States and Union Territories.

Therefore, the actual amount and procedure can differ according to:

• State/UT;
• nature of offence;
• extent of injury;
• disability;
• age of victim;
• loss of income;
• medical expenses; and
• rehabilitation requirements.

For example, compensation schedules may prescribe different amounts for:

• sexual assault;
• rape;
• acid attack;
• permanent disability;
• death;
• trafficking; and
• offences involving children.

9. Who Can Apply?

Depending upon the circumstances and applicable scheme, an application may be made by:

• the victim;
• the victim's legal guardian;
• dependants of a deceased victim;
• a parent or guardian in cases involving children; or
• another authorised person.

The precise procedure varies according to the applicable State or Union Territory scheme.

10. Application Procedure

Generally, the process involves:

Step 1 — Application

The victim or eligible person submits an application to the appropriate DLSA/SLSA or other authority prescribed by the applicable scheme.

Step 2 — Supporting Documents

Documents may include:

• FIR or crime details;
• medical records;
• disability certificate, where applicable;
• identity documents;
• death certificate, where applicable;
• income-related information;
• bank details; and
• other relevant documents.

Step 3 — Assessment

The authority examines:

• nature of injury;
• severity of harm;
• medical expenses;
• loss of income;
• rehabilitation requirements; and
• other relevant circumstances.

Step 4 — Determination

The competent authority determines compensation under the applicable victim compensation scheme.

Step 5 — Payment

The sanctioned amount is transferred or otherwise provided according to the applicable procedure.

11. Compensation Where the Offender Cannot Be Found

Victim compensation is particularly important where:

• the offender is unknown;
• the offender cannot be traced;
• prosecution cannot result in recovery from the offender; or
• the offender lacks sufficient resources.

The purpose of the statutory compensation mechanism is to prevent the victim's access to rehabilitation from depending entirely upon the offender's financial position.

12. Compensation and Acquittal

An acquittal does not automatically establish that a victim suffered no harm.

The victim compensation framework has a distinct rehabilitation purpose. Consequently, eligibility may depend upon the applicable statutory scheme and the facts of the case rather than solely upon the outcome of the criminal trial.

The authority must nevertheless apply the statutory requirements and relevant scheme.

13. Compensation for Sexual Offences

Victims of sexual offences may face:

• physical injuries;
• psychological trauma;
• medical expenses;
• loss of employment;
• social consequences;
• educational disruption; and
• long-term rehabilitation needs.

Victim compensation schemes therefore provide an important mechanism for financial and rehabilitative assistance.

The Nipun Saxena line of jurisprudence also highlights the importance of protecting the identity and dignity of sexual-offence survivors.

14. Compensation for Acid Attack Survivors

Acid attacks can result in:

• permanent disfigurement;
• blindness;
• physical disability;
• repeated surgeries;
• loss of employment;
• psychological consequences; and
• substantial medical expenditure.

The Supreme Court's decision in Laxmi v. Union of India played an important role in strengthening protections and compensation-related measures for acid-attack victims.

15. Compensation and Fundamental Rights

Victim compensation can also be connected with constitutional protections, particularly:

• Article 14 — equality;
• Article 21 — life and personal liberty;
• dignity;
• access to justice; and
• meaningful rehabilitation.

The Supreme Court has increasingly recognised that protection of victims is an important part of a fair criminal justice system.

16. Difference Between Fine and Victim Compensation

17. Key Principles

The major principles of victim compensation schemes are:

1. Victims are entitled to meaningful consideration within the criminal justice system.
2. Compensation is distinct from punishment.
3. Rehabilitation is an important objective.
4. Interim compensation may be necessary where immediate assistance is required.
5. The amount should take the nature and extent of injury into account.
6. State compensation mechanisms reduce dependence upon recovery from the offender.
7. Special protection is important for victims of sexual offences and acid attacks.
8. Victim privacy and dignity must be protected.
9. DLSAs and SLSAs have an important administrative role.
10. The applicable State/UT scheme determines many practical aspects of eligibility and quantum.

Conclusion

Victim compensation schemes represent an important shift from an offender-centred criminal justice system toward a victim-oriented and rehabilitative approach. Under the present legal framework, Section 396 BNSS provides the statutory basis for State-funded victim compensation, while the relevant State or Union Territory scheme determines many practical aspects of eligibility and compensation.

The Supreme Court decisions in Ankush Shivaji Gaikwad, Suresh, Laxmi, Nipun Saxena, Delhi Domestic Working Women's Forum, Bodhisattwa Gautam, Mallikarjun Kodagali, and Hari Singh demonstrate the growing recognition of compensation, rehabilitation, dignity and meaningful participation of victims in criminal justice.