**Summary:**
The Ministry of Road Transport and Highways has implemented the Cashless Treatment of Road Accident Victims Scheme, 2025, nationwide, as per notification S.O. 2015(E) dated May 5th, 2025, with guidelines outlined in S.O. 2489(E) dated June 4th, 2025. This scheme, enacted under Section 162 of the Motor Vehicles Act, 1988, entitles road accident victims to treatment coverage up to Rs. 1.5 lakh for a maximum of 7 days from the accident date at any designated hospital across India.
Since the pilot program's inception in six States/Union Territories in March 2024, 4,971 road accident victims have been treated as of July 31st, 2025. The scheme is jointly funded by general insurance companies for insured vehicles and through budgetary support from the Central Government for accidents involving uninsured vehicles. The allocated budgetary fund for uninsured cases during the financial year 2025-26 is Rs. 272 Crore.
An assessment of the financial ceiling indicates that the prescribed limit of Rs. 1,50,000 and a period of 7 days is adequate to cover a vast majority of trauma-related treatments.
Key Entities Referenced
Ministry of Road Transport and Highways: The Indian government ministry responsible for the formulation and administration of rules, regulations and laws relating to road transport, transport research and highways.
Motor Vehicles Act, 1988: An act of the Parliament of India that regulates all aspects of road transport vehicles.
Cashless Treatment of Road Accident Victims Scheme, 2025: A scheme by the Ministry of Road Transport and Highways to provide cashless treatment to road accident victims.
Andhra Pradesh: A state in India, mentioned in the context of expanding the Cashless Treatment Scheme.
Nitin Jairam Gadkari: The Minister of Road Transport and Highways of India.
General Insurance Companies: Entities contributing to the funding of the Cashless Treatment Scheme for insured vehicles.
Central Government: The Union Government of India, providing budgetary support for road accidents involving uninsured motor vehicles under the Cashless Treatment Scheme.
Rs. 1.5 lakh: The financial ceiling for treatment cover per victim under the Cashless Treatment of Road Accident Victims Scheme.
GOVERNMENT OF INDIA
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
LOK SABHA
UNSTARRED QUESTION NO. 4751
ANSWERED ON 21st AUGUST, 2025
CASHLESS TREATMENT SCHEME
4751. Shri G Lakshminarayana:
Dr. Byreddy Shabari:
Will the Minister of ROAD TRANSPORT AND HIGHWAYS
सड़क परिवहन औि िाजमार्ग मंत्री
be pleased to state:
(a) the present status of the cashless treatment scheme for road
accident victims under Section 162 of the Motor Vehicles Act, 1988
including the details of States and Union Territories where it is
operational or under pilot implementation;
(b) the number of beneficiaries treated under the said scheme so
far, State-wise and year-wise along with the funds allocated,
sanctioned and utilised;
(c) whether the Government proposes to expand the said scheme to
all States and Union Territories, including Andhra Pradesh and if so,
the details thereof along with the timeline; and
(d) whether any assessment has been made regarding the adequacy
of the financial ceiling and time limit prescribed under the scheme
and if so, the details thereof?
ANSWER
THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS
(SHRI NITIN JAIRAM GADKARI)(a) & (c) Cashless Treatment of Road Accident Victims Scheme,
2025 (Scheme) has been notified on a pan India basis vide S.O.
2015(E) dated the 5th May, 2025 and the Guidelines of the Scheme
have been notified vide S.O. 2489(E) dated the 4th June, 2025.
Under this Scheme any person who is a victim of road accident
caused by the use of a motor vehicle shall be entitled to treatment
cover upto Rs. 1.5 lakh per victim, subject to a maximum cap of 7
days from the date of accident at any designated hospital across
the country.
(b) Since inception of pilot program in 6 States & Union Territories
with effect from March 2024, 4,971 road accident victims have been
treated till 31st July, 2025. Further, the Scheme is jointly funded
with contributions by the general insurance companies for cases
where offending motor vehicle is insured and for cases involving
road accidents by motor vehicles other than insured motor vehicles,
budgetary support will be provided by Central Government. The
budgetary fund allocated under the Scheme for other than insured
cases during financial year 2025-26 is Rs. 272 Crore.
(d) Yes, an assessment has been made regarding the adequacy of
the financial ceiling prescribed under the Cashless Treatment of
Road Accident Victims Scheme. The analysis revealed that a vast
majority of trauma-related treatments are covered within a cost of
Rs.1,50,000 and a period of 7 days.
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