Road accident victims in India will now get cashless treatment under a statutory scheme notified under Section 162 of the Motor Vehicles Act, 1988. The Cashless Treatment for Road Accident Victims Scheme, 2025 aims to ensure immediate medical support during the golden hour and reduce delays caused by payment and paperwork. It applies to accidents involving motor vehicles on any category of road.
Key Features of the Scheme
The scheme provides treatment cover of up to Rs. 1.5 lakh per victim for a maximum of seven days from the date of accident. Stabilisation treatment is available for up to 24 hours in non-life-threatening cases and up to 48 hours in life-threatening cases at designated hospitals, subject to police response. The scheme takes precedence over other Central or State schemes for the same purpose.
Implementation Framework
The scheme is being implemented through the integration of two existing digital platforms:
- eDAR, used by police for accident reporting.
- TMS 2.0 of the National Health Authority, used by hospitals for treatment, claim submission and payment processing.
The third-party insurance status of the offending vehicle is captured through eDAR, which is linked with the VAHAN portal. This creates a digital trail from accident reporting to final payment.
Hospitals, Claims and Funding
Hospitals empanelled under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana are automatically treated as designated hospitals under the scheme. States and Union Territories may also onboard additional hospitals as per guidelines. After discharge, hospitals submit claims to the State Health Agency, which verifies and approves them. Payments are to be made within 10 days of approval. Reimbursement will come from the Motor Vehicle Accident Fund, supported by insurance company contributions for insured vehicles and budgetary support for other cases.
Related Provisions and Emergency Support
The scheme is distinct from Ayushman Bharat PM-JAY, which is a pre-identified health insurance scheme. It is also separate from the Compensation to Victims of Hit and Run Motor Accidents Scheme, under which fixed compensation is paid for death or grievous hurt. To ensure quick access to care, the scheme is integrated with the 112 Emergency Response Support System, which helps direct victims to the nearest designated hospital and arrange ambulance support if needed.
Last Modified: April 27, 2026