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Picture Courtesy:  THEHINDU

Context

Prime Minister to launch a nationwide cashless treatment scheme for road accident victims, offering coverage of up to ₹1.5 lakh and a cash award for Good Samaritans who rush victims to hospitals.

What is Cashless Treatment for Road Accident Victims?

This initiative by the Ministry of Road Transport and Highways (MoRTH) aims to provide immediate, cashless medical treatment to road accident victims. 

It is designed to save lives by ensuring professional medical care is not delayed due to financial constraints, especially during the critical "Golden Hour."

Road Safety Crisis In India

The number of road accident fatalities rose 2.3% to over 1.77 lakh in 2024, resulting in the death of 485 persons every day. The majority of victims (66.4%) are in the young age 18-45 years. (Source: Ministry of Road Transport and Highways).

In 2023, State and UT Police Departments reported 480,583 road accidents, resulting in 172,890 fatalities and 462,825 injuries nationwide. (Source: Road Accident in India Report)

According to World Road Statistics 2024, India's fatality rate per lakh population is 11.89, higher than China's (4.3) but lower than the USA's (12.76). 

India has the highest number of road accident fatalities globally. While global road fatalities fell by 5% between 2010 and 2021, India saw a 15% increase in the same period (Source: WHO Global Status Report on Road Safety).  

Road crashes are estimated to cost the Indian economy 3% to 5% of its GDP annually (Source: World Bank).

About Cashless Treatment Scheme

The scheme is legally backed by the Motor Vehicles (Amendment) Act, 2019, which mandated the creation of a framework for the cashless treatment of accident victims.

Core Features of the Scheme

• Eligibility: All victims of road accidents caused by motor vehicles, irrespective of their nationality.
• Treatment Coverage: Cashless treatment up to ₹1.5 lakh per person, per accident.
• Duration of Cover: Hospitalization is covered for up to 7 days from the date of the accident.
• Funding Source: The Motor Vehicle Accident Fund, created under the MV Act, will be used to reimburse hospitals for treatment costs.
• Implementing Agency: The National Health Authority (NHA), which also implements Ayushman Bharat (PM-JAY), is the implementing agency.
• Hospital Network: Treatment can be availed at hospitals empanelled under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
• Operational Platform: An IT platform integrating MoRTH's eDAR (e-Detailed Accident Report) application and NHA's Transaction Management System (TMS)

Significance of the Cashless Treatment Scheme

Reduces Preventable Deaths: By ensuring timely medical care, the scheme directly addresses delays that turn injuries into fatalities.

Alleviates Financial Burden: It protects victims and their families from catastrophic out-of-pocket expenditure on emergency health services.

Promotes Social Equity: The scheme provides a crucial safety net for the poor and uninsured, ensuring equitable access to emergency care.

Strengthens Emergency Ecosystem: It incentivizes private hospitals to admit accident victims without hesitation and improves coordination between police, health departments, and hospitals.

What are the challenges related to the Cashless Treatment Scheme?

Funding Sustainability

The long-term financial health of the Motor Vehicle Accident Fund is crucial. Consistent and adequate replenishment is necessary to support a nationwide rollout.

Coverage Limit

The ₹1.5 lakh cap may be insufficient for severe trauma cases requiring multiple surgeries, ICU care, and prolonged hospitalization, potentially leaving families with substantial bills after the initial 7 days.

Infrastructure Gaps

A severe shortage of well-equipped trauma centers, particularly in rural and highway areas, limits the scheme's effectiveness due to a lack of quality healthcare infrastructure.

Administrative Hurdles

Hospitals may face delays in reimbursement, creating reluctance to participate. A streamlined, fast, and transparent claim processing system is essential.

Public Awareness

Widespread awareness among the public, police, and ambulance services is needed to ensure victims are taken to empanelled hospitals where they can avail the benefits.

Preventing Fraud

Robust monitoring and audit mechanisms are required to prevent potential misuse, such as over-billing by healthcare providers.

Way Forward

The cashless treatment scheme is a crucial component of post-accident care, but it must be part of a broader, integrated strategy for road safety. 

Learn from globally recognized approach, which focuses on the '4 Es' of Road Safety.

• Education: Promoting awareness about traffic rules, the dangers of over-speeding and drunk driving, and the importance of helmets and seatbelts.
• Engineering: Designing safer roads with features like proper signage, crash barriers, scientific intersections, and pedestrian-friendly infrastructure.
• Enforcement: Strict and non-corrupt enforcement of traffic laws, including penalties for violations as enhanced by the Motor Vehicle (Amendment) Act, 2019.
• Emergency Care: Strengthening the emergency response system through schemes like this, expanding the trauma care network, and training first responders.

Conclusion

The Cashless Treatment Scheme for Road Accident Victims compassionate post-crash intervention, but its success in achieving a truly safer India requires complementary efforts in robust prevention through enforcement, better engineering, and public education.

Source: THEHINDU