Road accident victims to get free cashless treatment of up to Rs 1.5 lakh

Updated : Jan 31, 2024 16:36
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Editorji News Desk

The Ministry of Road Transport has approved a proposal for road accident victims to access free cashless treatment in hospitals across India. However, this is available only in hospitals that is empanelled with the Ayushman Bharat scheme.

Cashless treatment for road accident victims

The upper limit for the treatment will be Rs 1.5 lakh, covering up to 10 days of hospitalization. The cost of the treatment will be borne by insurance companies. The initiative also aims to ensure timely medical assistance during the 'golden hour' - the first 60 minutes after the accident.

As per many studies, giving proper care during the golden hour saves about 50% of the lives. In 2022, India reported a record high of 1.68 lakh road fatalities.

Implementation of Proposal

An inter-ministerial consultation was conducted on the proposal and it was included in the amended Central Motor Vehicle Act of 2019. As per The Economic Times, the scheme will be implemented soon, with no financial burden on the public exchequer.

Insurance companies will also not bear a big burden as this will cover only a fraction of the third-party insurance premiums they collect. The firms will also benefit from a significant reduction in compensation payouts when the fatality rates are reduced.

As per Road Ministry, the average medical expenses for around 97% of road crash cases amount to approximately Rs 60,000. Only a small number of victims require extended hospitalization and intensive care.

Union Transport Secretary Anurag Jain announced that the cashless scheme will be integrated into the final scheme, which will be launched by the Ministry of Health and Family Welfare in the near future.

Road Accident

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