Cashless Treatment Scheme for Road Accident Victims in India Notified
Moneylife Digital Team 06 May 2025
The Union government has notified a cashless treatment scheme for road accident victims nationwide. Under this scheme, road accident victims are entitled to cashless treatment for a maximum of Rs1.5 lakh per accident per person. Just last week, the Supreme Court pulled up the secretary of the ministry of road transport and highways (MoRTH) for the inordinate delay in framing a statutory scheme for providing cashless treatment to motor accident victims during the golden hour—the first critical hour where medical help is most useful.
 
According to a gazette notification issued by MoRTH, the scheme has come into force with effect from 5 May 2025. It says, "Any person being a victim of a road accident arising out of the use of a motor vehicle, occurring on any road, shall be entitled to cashless treatment in accordance with the provisions of this scheme." 
 
Road accident victims can avail cashless treatment at any designated hospital across the country. While the assistance covers medical expenses for a maximum of seven days from the date of the accident, there will be a financial limit of Rs1.5 lakh per individual.
 
The scheme will be implemented by the national health authority (NHA) in coordination with state government authorities and agencies like police, empanelled hospitals and the state health agency (SHA). 
 
Claims raised by hospitals for providing treatment to be reimbursed from the Motor Vehicle Accident Fund, jointly funded by general insurance companies and the Union government.
 
The Union government has made fund provision for Rs272 crore in the Budgetary allocation for FY25-26, Nitin Gadkari, minister of MoRTH, informed Lok Sabha in March this year.
 
On 8 January 2025, the Supreme Court had directed the Union government to frame a scheme under Section 162(2) of the Motor Vehicle Act by 14 March 2025, observing that once implemented, it could save the lives of several injured persons who succumb to injuries due to lack of timely treatment.
 
Section 162 mandates the creation of a scheme for cashless treatment during the golden hour to uphold the right to life guaranteed under Article 21 of the Constitution.
 
However, despite a draft concept note being prepared, no final scheme was notified. 
 
On 9 April 2025, the apex court had expressed serious displeasure, noting that this was a 'very serious breach and violation' of statutory and constitutional obligations.
 
When the matter came up for hearing last week, the SC also pulled up the General Insurance Council (GIC), whose counsel had submitted an application raising objections about integration with the transport network system (TNS).
 
"It is none of your business to submit this application. If Central government has designed a scheme they will implement it. Are you withdrawing this application or should we impose cost?” the Court warned.
 
Observing that GIC was creating 'roadblocks' in the implementation of the scheme, the Bench says, “You will keep on making objections and people will keep dying due to lack of golden hour treatment. The scheme has to be framed. How it will work, time will tell us. Constant changes will be needed. That does not mean the scheme will not be implemented.”
 
The GIC counsel ultimately sought permission to withdraw its application which the Court allowed. (Read: Cashless Treatment for Accident Victims: Supreme Court Warns Transport Ministry of Contempt Action)
 
Comments
21 Supreme Court Judges Disclose Assets under New Transparency Mandate
Moneylife Digital Team 06 May 2025
In a significant move towards enhancing transparency in the judiciary, 21 of the 33 sitting judges of the Supreme Court have made their asset declarations public. The disclosures were uploaded to the apex court’s official website on...
Only 6% of Names Recommended for HC Judgeship in Past 2.5 Years Related to Judges
Prashant Jha (Bar  and  Bench) 06 May 2025
As many as 14 of the 221 candidates recommended by the Supreme Court Collegium for appointment as judges of the High Courts over the past two and a half years are related to sitting or former judges of the Supreme Court or the High...
"Why Only Red Fort and Not Fatehpur Sikri Also?" Supreme Court Rejects Mughal Heir's Plea for Red Fort Possession
Debayan Roy (Bar  and  Bench) 05 May 2025
The Supreme Court on Monday dismissed a plea filed by a woman claiming to be the descendant of last Mughal emperor Bahadur Shah Zafar and seeking possession of Red Fort by virtue of her lineage (Sultana Begum Vs. Union Of India And...
Union Cabinet Announces Caste Enumeration in Next Census, Increases FRP for Sugar Cane, Approves Rs22,864-Crore Greenfield Highway Project in North-East
Moneylife Digital Team 30 April 2025
The cabinet committees on economic affairs (CCEA) and political affairs (CCPA), chaired by prime minister (PM) Narendra Modi, has decided that caste enumeration will be included in the forthcoming census. The CCEA also approved a...
Array
Free Helpline
Legal Credit
Feedback