Cashless Treatment Scheme For Road Accident Victims

Context: The Ministry of Road Transport and Highways launched the “Cashless Treatment” scheme to provide financial assistance to road accident victims.

Cashless Treatment Scheme For Road Accident Victims: Key Provisions

• Financial Support: Treatment costs up to ₹1.5 lakh will be covered for seven days, provided the police are informed within 24 hours of the accident.
• Reimbursement Mechanism: Hospitals will be reimbursed for treatment expenses through the Motor Vehicle Accident Fund.
• Treatment Packages: Victims can avail trauma and polytrauma care under Ayushman Bharat PM-JAY packages.
• Universal Coverage: Applicable to all motor vehicle road accidents, regardless of the type of road.
• Implementing Body: The National Health Authority (NHA) will oversee coordination among police, hospitals, and state agencies.
• Technology Integration: The e-Detailed Accident Report (eDAR) platform will assist in tracking and implementing the scheme.
• Ex-Gratia Compensation: ₹2 lakh will be provided to the families of victims in hit-and-run cases.
• Legal Backing: The scheme is mandated under Section 162 of the Motor Vehicles Act, 1988, ensuring cashless treatment for accident victims.

Need for the Cashless Treatment Scheme

• Rising Fatalities: India witnessed a 15% increase in road accident deaths from 2010 to 2021, with 1.8 lakh deaths reported in 2024, 66% aged between 18–34.
• Golden Hour Care: Timely medical intervention within the first hour can significantly reduce fatalities.
• Reducing Financial Burden: High medical costs often delay or prevent necessary treatment for victims.
• Strengthened Emergency Response: Integration of digital tools improves accident reporting and hospital coordination.
• National Road Safety Goals: The initiative aligns with India’s target to halve road deaths by 2030, under the UN’s Decade of Action for Road Safety.

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