On Tuesday, the Supreme Court directed the Central Government to ensure the cashless treatment scheme for road accident victims is implemented “in true letter and spirit,” granting each victim entitlement of up to ₹1.5 lakh per accident
A bench comprising Justices Abhay S Oka and Ujjal Bhuyan instructed the Centre to submit an affidavit by the end of August 2025, outlining the steps taken to implement the scheme, including the number of beneficiaries who have received treatment under it.
“We direct the Central Government to ensure that the scheme is implemented in its true letter and spirit,” the bench reiterated.
The Centre informed the Court that the scheme officially came into effect on 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.”
This directive follows the apex court’s earlier rebuke on April 28, when it criticized the Centre for delaying the formulation of the scheme despite a prior order on January 8. The court noted that even though Section 164A of the Motor Vehicles Act came into force on April 1, 2022, the Centre had not formulated the required scheme for interim relief.
“You are in contempt. You haven’t even bothered to seek an extension. What is going on? When will you frame the scheme? You don’t seem to care for your own statutes. This is a welfare provision meant to benefit the common man,” the bench remarked sharply.
The court also expressed concern over the authorities’ casual approach, especially in light of rapid highway expansion and increasing fatalities due to the lack of timely emergency treatment. It referred to the “golden hour” defined under Section 2 of the Motor Vehicles Act, which highlights the critical one-hour period following a traumatic injury during which timely medical attention can prevent death.
On January 8, the Court had specifically directed the Centre to frame a scheme under Section 162 for providing cashless treatment to accident victims during this golden hour.
The bench emphasized that immediate medical care must not be delayed due to financial constraints or procedural barriers, as such delays can cost lives. It also highlighted the government’s constitutional duty to uphold the right to life under Article 21.
The law requires insurance companies engaged in general insurance business in India to provide for the treatment of road accident victims, including care during the golden hour, in accordance with the scheme under the Motor Vehicles Act.
Despite the provision being active since April 2022, the lack of an implemented scheme prompted judicial intervention. The Centre had submitted a draft concept note, proposing a maximum treatment cap of ₹1.5 lakh per person and up to seven days of coverage. However, these limitations were challenged by the petitioner’s counsel, who argued that they fail to guarantee adequate medical care.
It also emerged that the General Insurance Council (GIC) had been assigned responsibility for managing hit-and-run compensation claims and was tasked with developing a portal to streamline documentation and reduce delays.
However, the Court noted that as of July 31, 2024, a total of 921 claims under the hit-and-run compensation scheme remained pending due to documentation issues. The GIC was directed to coordinate with claimants to address and resolve these deficiencies.
