Government Launches Nationwide Cashless Treatment Scheme for Road Accident Victims With Coverage Up to ₹1.5 Lakh

New Delhi: The Government of India has launched a statewide cashless treatment plan for victims of motor vehicle accidents, marking a significant step toward reducing mortality. The Cashless Treatment of Road Accident Victims Scheme, 2025 proposal was implemented by a notification released on May 5, 2025, with specific rules issued on June 4, 2025.

Under the policy, any person, regardless of nationality, who is injured in a road accident involving a motor vehicle in India is eligible for cashless trauma care up to Rs 1.5 lakh for a maximum of seven days from the date of the accident, providing treatment is commenced within 24 hours.

Although the plan is not covered by the Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PM-JAY), as a statutory plan, it provides fast, equitable, and cashless trauma care to road accident victims. 

The scheme uses the National Health Authority's IT platform for registration, verification, and claim processing, resulting in paperless and efficient service delivery. By leveraging the existing hospital network and established health benefit packages, the system offers continuity of service, portability, and financial security in emergency situations.

The Scheme is jointly funded with contribution by the general insurance companies for cases where offending motor vehicles are insured. The Central Government would provide fiscal help in cases involving traffic accidents caused by non-insured motor vehicles. The budgeted allocation provided under the Scheme for non-insured cases during the fiscal year 2025-26 is Rs. 272 crore.

The Union Minister of Road Transport and Highways, Shri Nitin Jairam Gadkari, provided this information in a written reply to the Lok Sabha.