Victim compensation is only available if the offender is convicted and fined.

This section provides a separate government-funded scheme that can compensate victims even when the offender is never traced, or the case ends in acquittal, as long as the victim needs rehabilitation.

Bharatiya Nagarik Suraksha Sanhita, 2023

Section 396

Victim compensation scheme

(1) Every State Government in co-ordination with the Central Government shall prepare a scheme for providing funds for the purpose of compensation to the victim or his dependents who have suffered loss or injury as a result of the crime and who require rehabilitation.§

(2) Whenever a recommendation is made by the Court for compensation, the District Legal Service Authority or the State Legal Service Authority, as the case may be, shall decide the quantum of compensation to be awarded under the scheme referred to in sub-section (1).§

(3) If the trial Court, at the conclusion of the trial, is satisfied, that the compensation awarded under section 395 is not adequate for such rehabilitation, or where the cases end in acquittal or discharge and the victim has to be rehabilitated, it may make recommendation for compensation.§

(4) Where the offender is not traced or identified, but the victim is identified, and where no trial takes place, the victim or his dependents may make an application to the State or the District Legal Services Authority for award of compensation.§

(5) On receipt of such recommendations or on the application under sub-section (4), the State or the District Legal Services Authority shall, after due enquiry award adequate compensation by completing the enquiry within two months.§

(6) The State or the District Legal Services Authority, as the case may be, to alleviate the suffering of the victim, may order for immediate first-aid facility or medical benefits to be made available free of cost on the certificate of the police officer not below the rank of the officer in charge of the police station or a Magistrate of the area concerned, or any other interim relief as the appropriate authority deems fit.§

(7) The compensation payable by the State Government under this section shall be in addition to the payment of fine to the victim under section 65, section 70 and sub-section (1) of section 124 of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023).§

Why this exists

Some crime victims never see their offender convicted, or even identified, and the fine-based compensation model (section 395) depends entirely on there being a conviction with a fine. This section creates a safety net funded by the government itself, ensuring victims can still get help rebuilding their lives even when the criminal justice process cannot deliver a conviction, following recommendations by courts and constitutional principles recognising victims' rights.

Common misconceptions

Myth: Victim compensation is only available if the offender is convicted and fined.
Fact: This section provides a separate government-funded scheme that can compensate victims even when the offender is never traced, or the case ends in acquittal, as long as the victim needs rehabilitation.