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Govt notifies cashless treatment scheme for road accident victims nationwide

by AIP Online Bureau | May 6, 2025 | Eco/Invest/Demography, Indian News, Non-Life, Policy, Regulation, Risk Management | 0 comments

“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,” the notification said.

NEW DELHI: Complying with the undertaking with the Supreme Court, the government has notified cashless treatment scheme for road accident victims nationwide, under which they will be entitled to a maximum amount of Rs 1.5 lakh per accident per person.

To ensure efficient rollout and monitoring, the central government will also set up a steering committee to oversee the scheme’s implementation.

According to a gazette notification issued by the Ministry of Road Transport and Highways, the scheme has come into force with effect from May 5, 2025.

“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,” the notification said.

The assistance covers medical expenses for a maximum of seven days from the date of the accident, with a financial cap of Rs 1.5 lakh per individual.

The National Health Authority (NHA) will serve as the central implementing agency, working in coordination with state health agencies, police, hospitals, and other stakeholders. Each State Road Safety Council will act as the nodal agency for local implementation and will facilitate hospital onboarding, patient treatment tracking, and fund disbursement.

The scheme allows full treatment at designated hospitals, while non-designated hospitals can provide only stabilisation care as per the guidelines. This provision ensures immediate life-saving interventions before victims are shifted to empanelled facilities.

This national rollout follows a pilot program launched by MoRTH on March 14, 2024, which tested the feasibility of cashless accident treatment in select regions. The positive response and outcomes from the pilot led to the scheme’s nationwide expansion.

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