Cashless Treatment Scheme for Road Accident Victims 2025: India’s roads, bustling with diverse vehicles and vibrant activity, are unfortunately also a hotspot for accidents. In 2023 alone, the country recorded approximately 4.8 lakh road accidents, resulting in 1.72 lakh fatalities, according to the Ministry of Road Transport and Highways (MoRTH). The staggering numbers underscore a grim reality: timely medical intervention is often the difference between life and death. To address this critical issue, the Government of India launched the Cashless Treatment of Road Accident Victims Scheme, 2025, a transformative initiative aimed at providing immediate, free medical care to road accident victims during the crucial "golden hour." This article delves into the scheme’s key provisions, implementation, benefits, and its potential to revolutionize emergency healthcare in India.
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Overview of the Scheme
The Cashless Treatment of Road Accident Victims Scheme, 2025, was officially notified by the Ministry of Road Transport and Highways (MoRTH) on May 5, 2025, following a Supreme Court directive to address delays in its implementation. Mandated under Section 162 of the Motor Vehicles Act, 1988, the scheme ensures that any person injured in a road accident involving a motor vehicle, on any road across India, is entitled to cashless treatment up to ₹1.5 lakh per person per accident for a maximum of seven days. The initiative focuses on the "golden hour"—the critical one-hour period following a traumatic injury when prompt medical intervention significantly increases survival chances.
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| Cashless Treatment Scheme for Road Accident Victims |
The scheme is a response to India’s alarming road accident statistics. With over 50% of road fatalities preventable through timely medical care, as per Law Commission reports, the government aims to remove financial barriers that often delay treatment. By providing free, cashless care, the scheme ensures that no victim is denied life-saving intervention due to lack of funds or insurance.
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Scheme Highlights
| Aspect | Details |
|---|---|
| Launch Date | Notified on May 5, 2025, by the Ministry of Road Transport and Highways (MoRTH) |
| Objective | Provide cashless treatment during the "golden hour" to save lives and reduce road accident fatalities |
| Eligibility | Any person injured in a road accident involving a motor vehicle; no ID proof required |
| Coverage | Up to ₹1.5 lakh per person for medical treatment; maximum 7 days per accident |
| Hit-and-Run Compensation | ₹2 lakh for fatalities; ₹50,000 for grievous injuries; processed within a month |
| Hospitals | Approximately 30,000 designated hospitals empanelled by the National Health Authority (NHA), including AB PM-JAY trauma care facilities |
| Golden Hour Focus | Prioritizes treatment within the first hour post-injury to maximize survival chances |
| Implementation | Managed by NHA; coordinated through State Road Safety Councils using e-Detailed Accident Report (eDAR) and TMS |
| Emergency Support | Integrated with Emergency Response Support System (ERSS) and 112 helpline for rapid medical response |
| Category | Central Govt Scheme |
| Year | 2025 |
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Key Provisions of the Scheme
Eligibility and Coverage:
- The scheme applies to any individual injured in a road accident caused by a motor vehicle, regardless of age, income, or social status. No paperwork or identification proof is required at the time of treatment, ensuring swift access to care.
- Victims are entitled to cashless treatment up to ₹1.5 lakh per person for a maximum of seven days from the date of the accident. This coverage is cumulative across all hospitals treating a single victim.
- The scheme takes precedence over other central or state government medical schemes, ensuring streamlined access to benefits.
Designated Hospitals:
- Treatment is provided at approximately 30,000 designated hospitals empanelled by the National Health Authority (NHA), including those under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) with trauma and poly-trauma care capabilities.
- If a victim is taken to a non-designated hospital, treatment is limited to stabilization, after which the patient must be transferred to a designated facility for further care.
Golden Hour Focus:
- The scheme emphasizes treatment during the golden hour, defined under Section 2(12A) of the Motor Vehicles Act as the one-hour period post-injury when prompt care is most effective in preventing death.
- Hospitals are mandated to initiate treatment immediately upon a victim’s arrival, with pre-authorization sought via the NHA’s Transaction Management System (TMS). For life-threatening cases, full treatment packages are unlocked even before police confirmation.
Funding and Payment Mechanism:
- The scheme is funded through the Motor Vehicle Accident Fund, which includes contributions from insured vehicles and budgetary allocations for uninsured or hit-and-run cases.
- Hospitals raise claims via an online portal, which are verified by State Health Agencies and paid within 10 days. This ensures hospitals are reimbursed promptly, encouraging participation.
Hit-and-Run Provisions:
- In hit-and-run cases resulting in fatalities, families receive ₹2 lakh as ex-gratia compensation, while grievous injuries are compensated with ₹50,000. Claims are processed by district-level Hit-and-Run Committees within a month, with payouts made within 15 days of verification.
Implementation and Monitoring:
- The National Health Authority (NHA) is the primary implementing agency, coordinating with police, hospitals, and State Health Agencies through an IT platform integrating the e-Detailed Accident Report (eDAR) application and TMS.
- The State Road Safety Council acts as the nodal agency in each state or Union Territory, responsible for onboarding hospitals, managing records, and facilitating payments.
- A 17-member steering committee, chaired by the Road Transport Secretary, monitors the scheme’s implementation to ensure efficiency and address challenges.
Objectives of Scheme
The Cashless Treatment Scheme for Road Accident Victims 2025 aims to provide immediate, life-saving medical care to road accident victims by ensuring cashless treatment up to ₹1.5 lakh per person for a maximum of seven days, with a focus on the critical "golden hour" to maximize survival rates. It seeks to remove financial barriers to emergency healthcare, ensuring universal access regardless of socio-economic status, and streamline coordination among police, hospitals, and health agencies through digital platforms like the e-Detailed Accident Report (eDAR) and Transaction Management System (TMS). The scheme also aims to support hit-and-run victims with ex-gratia compensation, strengthen India’s trauma care infrastructure by leveraging 30,000 designated hospitals, and align with the national goal of reducing road fatalities by 50% by 2030 under the UN’s Decade of Action for Road Safety.
Implementation Journey
The scheme builds on a pilot program launched on March 14, 2024, in Chandigarh, which was later expanded to six states, including Assam, Punjab, Haryana, and Puducherry. The pilot aimed to establish an ecosystem for timely medical care, integrating police, hospitals, and health agencies. Its success paved the way for the nationwide rollout in May 2025.
The Supreme Court played a pivotal role in accelerating the scheme’s implementation. In April 2025, it reprimanded the government for delays, as the scheme was mandated in the 2019 amendment to the Motor Vehicles Act but remained unimplemented for five years. The Court set a deadline, leading to the notification on May 5, 2025. It further directed the Centre to file an affidavit by August 2025 detailing the number of beneficiaries and implementation progress.
In Assam, the scheme was rolled out with specific directives to District Commissioners to integrate TMS and the Public Financial Management System (PFMS), open dedicated bank accounts, and submit data promptly, highlighting the state’s commitment to the initiative.
Benefits of the Scheme
Lifesaving Intervention:
- By ensuring treatment within the golden hour, the scheme addresses the critical issue of delayed medical care, which contributes to nearly 50% of road accident fatalities.
- The cashless model eliminates financial barriers, ensuring victims receive immediate care without upfront payments.
Universal Access:
- The scheme’s inclusivity—covering all victims regardless of socio-economic status—makes it a landmark step toward equitable healthcare.
- No requirement for identification at the time of treatment reduces bureaucratic hurdles, especially for marginalized or uninsured individuals.
Strengthened Emergency Response:
- Integration with the Emergency Response Support System (ERSS) and 112 helpline ensures rapid reporting, hospital identification, and ambulance services.
- The use of eDAR and TMS streamlines coordination, making the system efficient and transparent.
Support for Hospitals:
- Prompt reimbursement within 10 days encourages hospitals to participate actively, ensuring a robust network of designated facilities.
- The inclusion of AB PM-JAY hospitals leverages existing infrastructure, enhancing scalability.
Alignment with National Goals:
- The scheme supports India’s commitment to reducing road fatalities by 50% by 2030 under the UN’s Decade of Action for Road Safety.
- It complements other MoRTH initiatives, such as the Vehicle Scrapping Policy, PUCC 2.0, and Driver Training Institutes, to improve overall road safety.
Challenges and Future Considerations
While the scheme is a significant step forward, challenges remain. Weak enforcement of traffic laws, inadequate public transport, and the lack of safety features in low-cost vehicles contribute to India’s high accident rates. Additionally, ensuring all 30,000 designated hospitals have adequate trauma care facilities is critical, as some may lack the expertise or infrastructure for complex cases.
The scheme’s success also depends on seamless coordination between police, hospitals, and health agencies. Delays in police verification or hospital onboarding could hinder implementation. Furthermore, public awareness campaigns are essential to ensure victims and families know how to access benefits, especially in rural areas.
Conclusion
The Cashless Treatment of Road Accident Victims Scheme, 2025, is a bold and compassionate initiative that prioritizes lives over logistics. By providing free, cashless treatment up to ₹1.5 lakh during the golden hour, it addresses a critical gap in India’s emergency healthcare system. Backed by robust funding, digital infrastructure, and a nationwide network of designated hospitals, the scheme has the potential to save thousands of lives annually. As India works toward reducing road fatalities by 2030, this initiative stands as a testament to the government’s commitment to road safety and public welfare. For victims and their families, it offers hope, assurance, and the promise of timely care when it matters most.
FAQs
Q. What is the Cashless Treatment Scheme for Road Accident Victims 2025?
The scheme, notified by the Ministry of Road Transport and Highways (MoRTH) on May 5, 2025, provides cashless medical treatment up to ₹1.5 lakh per person for road accident victims for a maximum of seven days. It aims to ensure timely care during the "golden hour" to save lives.
Q. Who is eligible for the scheme?
Any person injured in a road accident involving a motor vehicle on any Indian road is eligible, regardless of age, income, or social status. No identification proof is required at the time of treatment.
Q. What is the "golden hour"?
The golden hour refers to the one-hour period following a traumatic injury when prompt medical intervention significantly increases the chances of survival. The scheme prioritizes treatment during this critical window.
Q. What is the coverage provided under the scheme?
- Up to ₹1.5 lakh per person per accident for medical treatment, covering a maximum of seven days.
- In hit-and-run cases, families of deceased victims receive ₹2 lakh, while those with grievous injuries get ₹50,000.
Q. Which hospitals provide treatment under this scheme?
Treatment is available at approximately 30,000 designated hospitals empanelled by the National Health Authority (NHA), including those under Ayushman Bharat PM-JAY with trauma and poly-trauma care facilities. Non-designated hospitals can provide stabilization before transferring patients to designated facilities.
Q. Do victims need to pay upfront for treatment?
No, the scheme is entirely cashless. Hospitals provide treatment without requiring upfront payment, and claims are reimbursed through the Motor Vehicle Accident Fund.
Q. What happens in hit-and-run cases?
- For fatalities, families receive ₹2 lakh as ex-gratia compensation.
- For grievous injuries, victims receive ₹50,000.
- Claims are processed by district-level Hit-and-Run Committees within a month, with payouts made within 15 days of verification.