Nationwide Cashless Treatment Scheme For Road Accident Victims - Expenses Upto Rs 1.5 Lakh Covered
Back in 2019, the government of India introduced provisions in the Motor Vehicles (Amendment) Act, which was limited to pilot trials in 4 states and 2 union territories. Now, finally, after five years, the government has introduced the Nationwide Cashless Treatment Scheme for Road Accident Victims. As part of this new scheme, each and every person who gets involved in a road accident will now receive immediate and free-of-cost medical treatment. This will help in saving thousands of lives that are claimed every year due to road accidents.
Cashless treatment scheme for road accident victims
This new policy of the Nationwide Cashless Treatment Scheme will make sure that any individual who gets involved in a road accident involving motor vehicles on any public Indian road in India will get medical attention. It has also been announced that the treatment will be provided regardless of the victim’s income, insurance status, residency, or responsibility for the accident.
As per the government of India, a maximum of Rs 1.5 lakh per person per accident will be provided. Additionally, it has been stated that this cap applies to the total cost of all medical treatment and care related to the injuries from one accident. The coverage under this new scheme will be valid for up to 7 consecutive days from the date and time of the accident.
This period includes emergency room care, surgical and medical intervention, hospital admission, diagnostic services, medication, and rehabilitation within the cap. What makes this new policy even more special is that the entire mechanism will be cashless. The victims or families of victims do not pay anything upfront. They will be directly reimbursed by the government to hospitals via the National Health Authority.
Which hospitals are included?
According to the police, around 30,000 hospitals across all the states and union territories of the country have been empanelled under this new scheme. All of the designated hospitals are required to provide immediate and comprehensive care to the road accident victims within the Rs 1.5 lakh and 7-day limit.
It also has to be noted that if an undesignated hospital is nearby, then they are only allowed to provide stabilization treatment, which includes resuscitation, wound control, and bleeding management. The undesignated hospitals are required to refer these victims to designated hospitals as quickly as possible.
On top of this, the new policy also states that if the designated hospital lacks trauma care capability, such as adequate equipment, staff, or ICU, then such hospitals will have to refer the patient to another designated hospital immediately. They will also have to log the referral on the scheme’s digital portal and arrange transportation of the victim to another facility.
As for the strict implementation of this new policy, the National Health Authority (NHA) will be the central coordinating agency. It will look after hospital onboarding, managing the treatment portal, overseeing fund flows, and interfacing with state-level counterparts. A 17-member committee chaired by the Secretary, Ministry of Road Transport and Highways, will oversee the process.
Along with this, there will be members including the Ministry of Health and Family Welfare, Ministry of Home Affairs, Ministry of Finance, Insurance Regulatory Authorities, selected state governments, National Disaster Management Authority, and relevant NGOs and citizen health forums. A total of Rs 272 crore in the FY 2025-26 has been kept for this new policy.