Victim compensation refers to the payment of compensation by the state to the victim from

the state funds. Those who advocate for victim compensation argue that, the state that fails to
prevent crime is under an obligation to provide compensation to the victims. The
compensation to victims of crime is a matter of concern, throughout the world. Since long the
victim was not the concern for the criminal justice system. Criminal law discourages the act
or omission which affects the rights of a person and the person who violates such rights has
always been punished with strict sanctions. But eventually, they realized the fact that the
victim of crime is getting nothing but mere satisfaction. This led to the development of victim
protection jurisprudence. The victim protection jurisprudence was first developed by the
United Nations General Assembly (UNGA) in 1985 by adopting a ‘Declaration of The Basic
Principles of Justice for the Victims of Crime and Abuse of Power. In this paper, an attempt
will be made to show that the compensatory rights of victims are not a vanishing point in
modern criminology in India. Compensation is the primary means of financial aid by the state
to crime victims in the aftermath of victimization, and it is one of the pillars of victim
assistance.
Objectives of Research -The primary objectives of the article is to understand and analyse-
(i) Who is a victim of crime?
(ii) What are the theoretical foundations or bases upon which state compensation to crime
victims are built?
(iii) What are the various victim compensation schemes that are in existence globally?
(iv) To what extent these schemes meet the needs of victims?
This article aims to analyse the means that exist in Indian law under which compensation can
be obtained by crime victims for the victimization they have suffered. It further emphasizes
on how crime victims can claim compensation from the government when the compensation
awarded by courts is insufficient to meet the crime victims’ needs. Overall, it examines the
national and domestic laws and practices relating to the right to compensation for crime
victims. Exclusively the focus is on state responsibility and the study is confined to victims of
crime. While examining relevant laws and practices, the article critically evaluates the
measures taken, by the government of India in consonance with international standards and
obligations regarding crime victims’ compensation.
Key words : Victim, Compensation, Schemes, Compensatory rights, National and domestic
laws
Introduction
"Penal laws of ancient communities are not the law of crimes, it is the law of wrongs. The
person injured proceeds against the wrong done by an ordinary civil action and recovers
compensation in the shape of money damages if he succeeds."~ Sir Henry James Sumner
Maine
Compensation was seen as a royal right in early Hindu law. Global awareness of victims'
rights, which are nevertheless ignored by lawmakers, has increased recently. The study of
victims of crimes is one of the most understudied areas. An individual who experiences loss
or harm as a result of a crime is considered a victim. The victim waits for justice for virtually
his entire life under our current court system because it often takes years to get a decision.
Why is Compensation Required for Victims?
Nowadays, criminal proceedings are turning into a struggle between the State and the
accused. The suffering of the victims is frequently disregarded in the struggle for dominance
between the State and the accused. Despite being proved guilty in court, the perpetrator is
captured, put on trial, sentenced, absolved, or in certain cases even freed on probation. The
victim is still the victim, though. Consequently, it requires a certain time for a criminal justice
system to go beyond simply penalising the offender.
The victim of a crime frequently looks for retribution from the offender. It can be obtained in
one of two ways: either by punishing the perpetrator solely or by punishing the offender as
well as compensating the victim.
Thus, justice is finished when the victim is reimbursed as well. It is crucial to offer the victim
some relief in the form of compensation in order to fully satisfy his mental needs.
Victims of crime must be given compensation for their losses. The payment of compensation
to crime victims is a worldwide issue. The conditions of crime victims are appalling. The
victim has long been ignored by the criminal justice system. The criminal justice system does
not significantly include the victim. Across the world, victims of terrible crimes do not
receive the compensation they are entitled.
Criminologists' first attention was solely on the punishment component. Criminal law forbids
any action or inaction that negatively impacts the Criminal law forbids any action that
interferes with another person's rights and punishes both the perpetrator and those who do so.
Such rights have historically been sanctioned with harsh penalties. But finally, they
recognised the reality that the victim of crime is getting nothing but only a mere satisfaction
that the accused has been punished. Because of this, victim protection law was created.
The United Nations General Assembly (UNGA) adopted a "Declaration of The Basic
Principles of Justice for the Victims of Crime and Abuse of Power" in 1985, which served as
the foundation for victim protection law. This was thereafter approved by a considerable
number of countries including India. This statement was a turning point in the pro-victim
movement. This is regarded as the Magna Carta for victims.
 WHO IS A VICTIM OF CRIME?
In this regard, the United Nations General Assembly Declaration of Basic Principles of
Justice for Victims and Abuse of Power1, adopted in November 1985, provides an
exhaustive definition of ‘Victims’:

1. Victim’s means persons who have suffered harm, including physical or mental injury,
emotional suffering, economic loss, or substantial impairment of their fundamental rights,
as a result of acts or omissions.
2. Regardless of whether the perpetrator is identified, apprehended, prosecuted, or convicted,
and regardless of the perpetrator’s familial relationship with the victim, a person may be
considered a victim under this Declaration. The term ‘victim’ also includes, where
applicable, the direct victim’s immediate family or dependents, as well as those who have
been harmed while intervening to help victims in distress or prevent victimization.

International Scenario 2

UNITED NATIONS • The Declaration of Basic principles of Justice for Victims of Crime and Abuse of
Power (Declaration) was adopted by consensus in the United Nations General Assembly in 1985,
reflecting the collective will of the International Community to address the interests and concerns of
victims of crime.

NEW ZEALAND • New Zealand was one of the first nation to establish a compensation plan in the
year 1963.

UNITED KINGDOM • Criminal injuries compensation was introduced in 1964 as an experiment on a

non-statuary basis to provide ex gratia compensation to the victims of crimes of violence and to
those hurt in their attempts to arrest the offenders and to prevent crimes.

NETHERLANDS The idea of establishing a compensation fund whereby compensation would be paid
from government funds to victims of serious crimes of violence came up in the Netherlands around
the year 1970.

GERMANY • Germany has a crime victim compensation program to provide financial compensation
for victims of violent or personal crime which came into force in the year 1976.

FRANCE • In March 1977, Act. No. 77.5 of 3 January 1977 came into force throughout the Republic
of France guaranteeing state compensation for certain categories of physical injury resulting from
crime.

PHILIPPINES • The Government of Philippines brought the Victim Compensation scheme in the year
1984.

Indian scenario : Victim compensation 3

 154th Law Commission Report, 1996 -

1
https://legal.un.org/avl/ha/dbpjvcap/dbpjvcap.html
2
https://www.icc-cpi.int/about/victims
3
https://www.legalserviceindia.com/articles/pun.html
Compensation was proposed as a recognized method of protection that offered immediate support
to the victim. The report stated that compensation could also be extended to the family of the victim
in certain instances.

 Malimath Committee recommendations - 2003

Recommended establishment of Victim Compensation Fund. Victim compensation is a State

obligation, whether the offender is apprehended or not, convicted or acquitted. This is to be
organised in a separate legislation A Victim Compensation Fund can be created under the
victim compensation law and the assets confiscated in organised crimes can be made part of
the fund.

 154th Law Commission Report, 1996

Compensation was proposed as a recognized method of protection that offered immediate

support to the victim. The report stated that compensation could also be extended to the
family of the victim in certain instances. Laws governing compensation to victims of crime

 The provisions relating to compensation to victims of crime are contained in sections 357,
357(1), 357 (2), 357 (3), 357A, 358, 359 and 250 of the Code of Criminal Procedure, 1973.

 Article 14 and 21 of the Constitution of India encompasses within its fold safeguards to
victims of crime

 Recent Amendments4
Amendments made to the Code of Criminal Procedure (CrPC), 1973 in 2008 as well as
through the Criminal Law (Amendment) Act of 2013, made a breakthrough in acknowledging
the rights of the victim. Though one generally assumes compensation to be a remedy
granted by civil courts and sentencing a function of criminal courts, Section 357 clubbed the
two remedies together, thereby ensuring that the victim would not have to approach two
different courts, hence expediting the compensation process.

Sec 357-A CrPC

 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.

 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)

 If the trial Court, at the conclusion of the trial, is satisfied, that the compensation awarded
under section 357 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
https://www.mha.gov.in/sites/default/files/2022-08/CSdivTheCriminalLawAct_14082018%5B1%5D.pdf
  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.

 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.

 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.

Under Section 357-A of the CrPC each state formulated a victim compensation scheme.  Despite
the existence of statutory provisions and schemes of the States, the victims of crimes rarely received
any compensation.

The same was taken note of by the Hon’ble Supreme Court in Ankush Shivaji Gaikwad v State of
Maharashtra (2013) 6 SCC 770 a5nd the Apex Court made mandatory for trial Courts to consider
grant of interim compensation and to give reasons for not recommending compensation to the
victims of the crime.

Notification dated 14th October, 2015 : 6Central government set up the Central Victim
Compensation Fund Scheme

The Scheme aims at supporting and supplementing existing victim compensation schemes notified
by states and union territories and reducing the disparity in the quantum of compensation notified
thereof. It defines the scope for budgetary allocation and provides for accounting and audit. It also
opens public participation by inviting funding.

Writ Court and Grant of Compensation

In Rudal Sah V State of Bihar AIR 1983 SC 1086 7- The petitioner remained in illegal detention for
more than 14 years. After notices were issued and when the petition was taken up for hearing, the
Government informed that the petitioner has been released from custody. Under the general rule,
the writ petition had become infructuous. However, the Supreme Court issued notice on the
ancillary relief and after hearing the parties deemed it fit to grant a compensation of Rs. 30000/-.
This was perhaps the first case where writ court in India granted compensation for illegal detention.

Hitendra Vishnu Thakur Vs State of Maharashtra (1994) 4 SCC 602 8The Supreme Court observed as
follows: “…A procedural statute should not generally speaking be applied retrospectively where the
result would be to create new disabilities or obligations or to impose new duties …” A statute which
not only changes the procedure but also creates new rights and liabilities shall be construed to be

5
https://mphc.gov.in/upload/jabalpur/MPHCJB/2020/CRA/270/CRA_270_2020_FinalOrder_27-Apr-2022.pdf
6
https://www.mha.gov.in/sites/default/files/2022-09/CVCFFuideliness_141015_0_0%5B1%5D.pdf
7
https://main.sci.gov.in/jonew/judis/9759.pdf
8
https://main.sci.gov.in/supremecourt/2021/23563/23563_2021_3_1501_38491_Judgement_23-Sep-
2022.pdf
prospective in operation. As Amendment Act of 2008 created new liabilities on the State, it appears
to be retrospective in nature.

Suresh v. State of Haryana (2015) 2 SCC 2279: “It is the duty of the courts, on taking cognizance of a
criminal offence, to ascertain whether there is tangible material to show commission of crime,
whether the victim is identifiable and whether the victim of crime needs immediate financial… relief.
On being satisfied on an application or on its own motion, the court ought to direct grant of interim
compensation, subject to final compensation being determined later. Gravity of offence and need of
victim are some of the guiding factors to be kept in mind, apart from such other factors as may be
found relevant in the facts and circumstances of an individual case.

Nipun Saxena v. Union of India Cri MP 16041/2014 10Pursuant to Supreme Court directions NALSA
drafted the Grant of Compensation to Women Victims/ Survivor of Sexual Assault/Other Crimes.

Important features of the Scheme: 

(i) Woman victim eligible for compensation from multiple schemes

(ii) Online application for compensation.

(iii) The enquiry to be completed within 60 days &

(iv) In Acid Attack case, and in all other deserving cases, the Secretary DLSA to grant interim
compensation.

Subsequently Supreme Court laid down that NALSA’s Compensation Scheme for Women/Victims
should function as a guideline to the Special Courts for the award of compensation of victims of child
sexual abuse under Rule 7 until the Rules are finalized by the Central Government.

In Re Alarming Rise in the Number of Reported Child Rape Incidents [Suo Motto Writ (Crl) 1 of
2019]

The Supreme Court awarded as an interim measure compensation of Rs 25,00,000 (Rupees twenty
five lakhs only) to the rape victim and called for reports from States and UT as regard payment of
compensation including interim compensation to victims of crime.

Challenges
 Lack of uniformity: State victim compensation schemes are non-uniform, fail to comply with
the centre’s guidelines and continue to suffer from various other inadequacies, such as the
usage of wide umbrella-like terms that cover several offences under one amount of
compensation, resulting in a grave injustice to the victims of crimes differing in their nature
and gravity.
 Funds & Disbursement: The State exchequer must cater for contingencies and be supportive
of the expenditure incurred by the victims. Disbursements which are sparingly done, has to
be increased and consolidated.
 Implementation: Each state set a different compensation amount based on the category of
victim. Moreover, there is no systematic method for categorization of the victim based on
the nature of the crime or the age of the victim. Some states took the age of the victim into

9
https://indiankanoon.org/doc/42131728/
10
https://www.legalserviceindia.com/legal/article-10413-case-comment-nipun-saxena-v-s-union-of-india.html
 account while others did not. The major problem in implementation of victim compensation
schemes is the serious lack of awareness. The victims availing compensation under the
scheme is nowhere close to the incidents of crime being reported every year

Measures

 Victimology is the only way forward, which could reinstall confidence in the criminal justice
system, for it is not the imposition of harsh prison sentences on the criminal that ultimately
benefits the victim; rather it is the reparative actions that would lessen the victim’s injuries
and losses.
 Introduction of formal mechanism of victim impact assessment to bring in objectivity and
consistency in deciding the quantum of compensation.
 Focus on effective implementation: While Sections 357 and 357A of the CrPC are steps in the
right direction, their implementation requires much fine-tuning.