Government Rolls Out Scheme Providing Up to Rs 1.5 Lakh Cashless Treatment to Save Lives in the Golden Hour
NEW DELHI (India CSR): In a transformative step toward improving road safety and public health, the Indian government has launched a nationwide scheme offering free, cashless treatment to road accident victims, effective from May 12, 2025. This initiative, driven by the Ministry of Road Transport and Highways (MoRTH), ensures that anyone injured in a road accident involving a motor vehicle can receive immediate medical care without financial burden for up to seven days, with costs covered up to Rs 1.5 lakh. Prompted by a Supreme Court mandate, the scheme aims to reduce preventable deaths by providing timely treatment during the critical “golden hour” post-accident, offering hope to millions affected by road crashes annually.
The Urgent Need for the Scheme
Road accidents are a pressing public health crisis in India, claiming numerous lives each year. In 2023, the country recorded approximately 1.72 lakh road accident fatalities, a 4.2% increase from 2022, according to government data. The Law Commission has noted that over 50% of these deaths could be prevented with prompt medical intervention. However, financial constraints and lack of access to quality healthcare often delay treatment, particularly for low-income families. The “Cashless Treatment of Road Accident Victims Scheme, 2025,” addresses this gap by ensuring that no victim is denied care due to inability to pay, focusing on the golden hour when immediate treatment can be life-saving.
How the Scheme Operates
The scheme is designed to be accessible and efficient, with clear guidelines for implementation:
- Eligibility: Any individual injured in a road accident caused by a motor vehicle on any road—public or private—is entitled to cashless treatment.
- Coverage Details: The government covers treatment costs up to Rs 1.5 lakh per person per accident for a maximum of seven days from the accident date. This includes trauma and polytrauma care under Ayushman Bharat PM-JAY packages.
- Designated Hospitals: Approximately 30,000 hospitals, empaneled by the NHA in collaboration with state and Union Territory governments, serve as designated facilities for treatment . If a designated hospital lacks the necessary facilities or expertise, it must refer the patient to another designated hospital, logging the transfer on the scheme’s portal and arranging transportation.
- Non-Designated Hospitals: Treatment at non-designated hospitals is limited to stabilization, after which patients are transferred to a designated facility.
- Access Process: Victims or their representatives must inform the police within 24 hours of the accident to initiate the process. The police use the e-Detailed Accident Report (eDAR) application, integrated with the NHA’s Transaction Management System (TMS), to facilitate treatment authorization.
- Hit-and-Run Compensation: In hit-and-run cases resulting in fatalities, the victim’s family receives Rs 2 lakh from the Motor Vehicle Accident Fund.
- Reimbursement: Hospitals raise claims for treatment, which are reimbursed from the Motor Vehicle Accident Fund, ensuring no out-of-pocket expenses for victims.
| Aspect | Details |
|---|---|
| Coverage Amount | Up to Rs 1.5 lakh per person |
| Treatment Duration | Maximum 7 days from accident |
| Designated Hospitals | ~30,000 empaneled by NHA |
| Hit-and-Run Compensation | Rs 2 lakh for fatalities |
| Reporting Requirement | Police notification within 24 hours |
Implementation and Oversight
The scheme’s implementation relies on a robust IT infrastructure that integrates MoRTH’s eDAR application with NHA’s TMS, enabling real-time coordination among police, hospitals, and state health agencies. This digital platform ensures swift approval of claims, minimizing delays in medical care. The National Health Authority, in collaboration with local police, empaneled hospitals, and state health agencies, oversees the program’s execution.
A 17-member steering committee, chaired by the road transport secretary, monitors the scheme’s progress, addresses operational challenges, and ensures compliance with guidelines. The government has allocated Rs 272 crore for the scheme in the 2025-26 financial year, underscoring its commitment to sustainability.
Legal and Historical Context
The scheme’s rollout was spurred by a Supreme Court directive, which set a deadline of May 9, 2025, for its notification, criticizing the government for delays since its inclusion in the amended Motor Vehicles Act of 2019. The notification, issued on May 5, 2025, met the court’s deadline just in time, marking a significant step toward fulfilling legal obligations.
Prior to the nationwide launch, the scheme was piloted in states like Assam, Punjab, Haryana, and Puducherry, benefiting over 6,840 individuals (Hindustan Times). The pilot’s success, coupled with lessons learned, informed the nationwide expansion, ensuring scalability and effectiveness.
Potential Impact and Challenges
The scheme holds immense potential to transform emergency medical care for road accident victims. By removing financial barriers, it could significantly reduce the estimated 50% of preventable fatalities, saving thousands of lives annually. The focus on the golden hour aligns with global best practices, positioning India as a leader in addressing road safety challenges.
However, challenges remain. The readiness of all 30,000 designated hospitals, particularly in rural areas, is critical. Not all empaneled hospitals may have advanced trauma care facilities, necessitating efficient referral systems. Public awareness about the scheme and the requirement to notify police within 24 hours will also be crucial for its success. The steering committee’s role in monitoring and addressing these issues will be pivotal.
Stakeholder Perspectives
While direct stakeholder reactions are limited in available reports, Union Minister Nitin Gadkari has emphasized road safety as a priority, highlighting the scheme’s role in saving lives. The Supreme Court’s involvement reflects judicial support for timely implementation. Public health experts are likely to view the scheme as a step toward equitable healthcare access, though its long-term impact will depend on sustained funding and coordination.
Broader Road Safety Efforts
The cashless treatment scheme is part of a broader push to enhance road safety in India. Recent initiatives include mandatory safety features like electronic stability control and driver drowsiness alerts for vehicles, as well as the establishment of 1,250 Driver Training Institutes with a Rs 4,500 crore investment. These efforts complement the treatment scheme, addressing both prevention and response to road accidents.
You Learn
The nationwide launch of the cashless treatment scheme for road accident victims is a landmark achievement in India’s quest to reduce road accident fatalities and improve public health. By ensuring free, immediate medical care, the government is taking a proactive stance to save lives and alleviate the socio-economic burden on affected families. As the scheme rolls out, effective implementation, public awareness, and hospital readiness will be key to realizing its full potential. This initiative not only addresses a critical public health issue but also sets a precedent for compassionate, inclusive governance.
(India CSR)
