Health & SocialImportant2025-05-05

Cashless Treatment of Road Accident Victims Scheme Notified

In News

What Happened

On May 5, 2025, the Ministry of Road Transport and Highways (MoRTH) officially rolled out the Cashless Treatment of Road Accident Victims Scheme across India. The scheme entitles any victim of a motor vehicle accident on a public road to free medical treatment up to Rs 1.5 lakh at designated hospitals for a maximum of seven days. The National Health Authority (NHA) acts as the central implementing agency, coordinating with police, hospitals, and State Road Safety Councils.

Why It Matters

India records one of the highest numbers of road traffic fatalities globally, with over 1.7 lakh deaths reported in 2023 alone. This scheme ensures that critical, life-saving care is not delayed due to financial constraints or paperwork, effectively institutionalizing the "golden hour" medical response. By shifting the financial burden to the Motor Vehicle Accident Fund, it guarantees immediate health access and significantly improves survival rates for crash victims.

Background

History & Context

The legal foundation for this scheme was laid down by the Motor Vehicles (Amendment) Act, 2019. It introduced Section 162, which mandated the Central Government to develop a scheme for the cashless treatment of road accident victims during the "golden hour", defined as the critical first 60 minutes after trauma. Furthermore, the Act directed the creation of a Motor Vehicle Accident Fund to finance emergency care and compensation. Prior to a nationwide launch, MoRTH initiated a pilot program in Chandigarh in March 2024, which was subsequently expanded before the pan-India notification in May 2025.

What Changed

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BEFORE: Accident victims or their families had to bear out-of-pocket expenses for emergency treatment, or wait for third-party insurance claims, which often delayed critical care. NOW: Any victim of a motor vehicle accident receives immediate, cashless medical coverage up to Rs 1.5 lakh for seven days, irrespective of their income or insurance status.
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BEFORE: There was no centralized framework ensuring nationwide compliance from hospitals for treating unfunded accident victims. NOW: A dedicated IT portal managed by the National Health Authority (NHA) integrates police records, hospital claims, and State Health Agencies to ensure seamless processing and reimbursement to designated hospitals.
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BEFORE: "Golden hour" treatment was largely an advisory concept without a dedicated, compulsory national funding mechanism for all road users. NOW: The scheme operates under the statutory mandate of the Motor Vehicles (Amendment) Act, 2019, utilizing the specially created Motor Vehicle Accident Fund to strictly enforce emergency trauma care.

Prelims Angle

NCERT Connection

This scheme practically applies the concept of the Right to Life enshrined in Article 21, as discussed in Class 11 Political Science Chapter 2 (Rights in the Indian Constitution). The Supreme Court of India has interpreted Article 21 to include the fundamental right to immediate medical aid, establishing that no hospital can deny emergency care to an accident victim over medico-legal or financial formalities.

Practice Questions

Q1

With Reference To

With reference to the Cashless Treatment of Road Accident Victims Scheme, 2025, consider the following statements: 1. It provides cashless medical treatment up to Rs 1.5 lakh for a maximum of 14 days from the date of the accident. 2. The National Health Authority (NHA) serves as the national implementing agency for the scheme. 3. The initiative is funded by the Motor Vehicle Accident Fund, established under the Motor Vehicles (Amendment) Act, 2019. Which of the statements given above is/are correct?

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