Government Launches Cashless Treatment Scheme, ₹1.5 Lakh Aid For Each Road Accident Victim

New Delhi: In a significant step towards improving emergency healthcare access, the Government of India has notified the nationwide implementation of a Cashless Treatment Scheme for Road Accident Victims. Effective from May 5, 2025, the initiative ensures free medical care up to Rs 1.5 lakh per accident victim.

Coverage and Eligibility

According to a gazette notification by the Ministry of Road Transport and Highways (MoRTH), any person injured in a road accident involving a motor vehicle on any Indian road is eligible for the scheme. Victims can avail of cashless treatment at any designated hospital across the country.

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.

Treatment Scope and Hospital Network

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.

Key Implementing Bodies

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.

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

Background and Development

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.