Implement cashless scheme for road accident victims in true letter and spirit: SC to Centre

New Delhi | The Supreme Court on Tuesday directed the Centre to implement "in true letter and spirit" cashless treatment scheme for road accident victims, who would be entitled to a maximum amount of Rs 1.5 lakh per accident per person.

A bench of Justices Abhay S Oka and Ujjal Bhuyan directed the Centre to file an affidavit by end of August 2025 setting out the implementation of the scheme giving details such as the number of beneficiaries who received cashless treatment under the scheme.

"We direct the central government ensure that the scheme is implemented in its true letter and spirit," the bench said.

The Centre informed the top court about framing the scheme, which came into effect May 5.

According to a gazette notification issued by the Ministry of Road Transport and Highways, "any person being a victim of a road accident arising out of the use of a motor vehicle, occurring on any road, shall be entitled to cashless treatment in accordance with the provisions of this scheme".

The top court on April 28 pulled up the Centre over the delay in formulating a cashless scheme for treating motor accident victims and observed despite its January 8 order, the Centre neither complied with the direction nor did it ask for an extension of time.

The top court said though Section 164A of Motor Vehicles Act was brought into force on April 1, 2022 for a period of three years, the Centre did not implement it by framing the scheme for the interim relief to claimants.

"You are in contempt. You have not bothered to seek extension of time. What is this going on? You tell us when will you frame the scheme? You don't care for your own statutes. This is one of the welfare provisions. Three years (since) this provision has come into place. Are you really working for the welfare of common man?" the bench asked.

The top court further censured the authorities for their "casual" approach and pointed out the construction of highways on the one hand, and deaths due to lack of facilities such as the golden hour treatment.

The golden hour under Section 2 (12-A) of the Motor Vehicles Act, 1988 refers to a one-hour window following a traumatic injury under which a timely medical intervention will most likely prevent death.

On January 8, the top court directed the Centre to formulate the scheme for the cashless medical treatment of motor accident victims in the golden hour period mandated under the law.

The bench referred to Section 162(2) of the Act, and ordered the government to provide by March 14 the scheme which could save numerous lives with prompt medical care to accident victims.

It underscored the importance of providing immediate medical care during the critical period and said delays caused by financial concerns or procedural hurdles often cost lives.

The top court also underlined the statutory obligation on the Centre to frame the scheme as it "sought to uphold and protect the right to life guaranteed by Article 21 of the Constitution".

The law, therefore, provides the insurance companies carrying on general insurance business in India to provide for the treatment of road accident victims, including during golden hour in accordance with the scheme made under the MV Act, it said.

Govt notifies cashless treatment scheme for road accident victims nationwide

Despite the provision being in force since April 1, 2022, the government was yet to implement the scheme, prompting the court's intervention.

The Centre had submitted a draft concept note outlining the proposed scheme, which included a maximum treatment cost of Rs 1.5 lakh and coverage for seven days.

However, these limitations were criticised by the petitioner's counsel who argued they fell short of addressing the need for comprehensive care.

It also came on record that the GIC was tasked with administering hit-and-run compensation claims and developing a portal to streamline the process.

The portal is meant for uploading the required documents, inform states of deficiencies, and reduce delays in processing claims.

The top court noted 921 claims under the hit-and-run compensation scheme remained pending as of July 31, 2024, due to document deficiencies, and asked the GIC to coordinate with claimants and address the issue