Centre rolls out Rs 1.5 lakh cashless treatment scheme for road accident victims across India

In a move to strengthen road safety and emergency medical care, the Central government has officially notified a nationwide scheme offering cashless treatment of up to Rs 1.5 lakh for road accident victims. The scheme, titled Cashless Treatment of Road Accident Victims Scheme, 2025, came into effect on May 5, 2025, according to a gazette notification issued by the Ministry of Road Transport and Highways.

Under the scheme, any individual injured in a road accident involving a motor vehicle on any public road in India will be eligible for cashless medical treatment at designated hospitals. The maximum benefit under the scheme is capped at Rs 1.5 lakh and is valid for up to seven days from the date of the accident.

“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 notification stated.

The Union Transport Minister, Nitin Gadkari, had earlier in January indicated that the government was working on a modified and more inclusive scheme to support accident victims with immediate healthcare.

To ensure seamless execution, the National Health Authority (NHA) will serve as the coordinating agency. It will work in collaboration with the police, hospitals, and respective State Health Agencies to operationalise the scheme effectively.

The notification also clarifies that in cases where treatment is initiated at a non-designated hospital, medical aid will be limited to stabilisation procedures only, as outlined in the scheme’s guidelines.

The initiative marks a significant step toward reducing fatalities and long-term injuries from road accidents by ensuring that victims receive prompt and adequate medical care without financial burdens.