Frame Cashless Treatment Scheme For Road Accident Victims During 'Golden Hour' By March 14 : Supreme Court Directs Centre

The Supreme Court today (January 8) directed the Central Government to frame a scheme for cashless treatment for victims of motor vehicle accidents during the “golden hour”, the first hour after a traumatic injury when prompt medical care has the highest likelihood of preventing death by March 14, 2025.

“Once the scheme is framed and its implementation starts, it will save the lives of several injured persons who succumb to injury simply because they do not receive requisite medical treatment during the golden hour. We, therefore, direct the Central Government to make a scheme in terms of Sub Section (2) of Section 162 of the MV Act as expeditiously as possible and, in any event, by 14th March 2025. No further time shall be granted”, the Court observed

A bench of Justice Abhay S Oka and Justice Augustine George Masih emphasized the urgency of implementing a scheme provided under Section 162 of the Motor Vehicles Act, 1988 (MV Act), to ensure immediate medical aid to accident victims -

“The provision made in Section 162 for framing a scheme for providing cashless treatment in the golden hour seeks to uphold and protect the right to life guaranteed by Article 21 of the Constitution. Moreover, it is a statutory obligation of the Central Government to frame the scheme.”

Cashless Treatment

The Court noted that the injured in motor accidents often face delayed medical treatment during the critical golden hour due to the absence of relatives, hospital concerns over payment, or waiting for police.

To address this, Section 162, effective from April 1, 2022, mandates the creation of a scheme for cashless treatment of motor accident victims during the golden hour. The “golden hour,” defined under Section 2(12-A) of the MV Act, refers to the crucial first hour following a traumatic injury, when prompt medical care has the highest likelihood of preventing death. Section 162(1) imposes an obligation on general insurance companies to provide such treatment, while Section 162(2) assigns the Central Government the responsibility to frame a scheme that may include the creation of a fund for this purpose.

Section 164-B of the MV Act provides for the establishment of the Motor Vehicle Accident Fund. The fund, constituted by the Central Government, is designated for purposes such as providing insurance coverage to road users and funding the treatment of accident victims. The fund is to be managed under the rules and guidelines specified by the government, with oversight by the Comptroller and Auditor-General of India.

The Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022, outline the utilization and disbursement mechanisms for this fund, specifically for cashless treatment during the golden hour.

The Supreme Court noted that despite the statutory obligation, no scheme has been implemented since Section 162 came into force. On April 5, 2024, the Central Government submitted a draft concept note prepared by the Ministry of Road Transport and Highways, but the scheme has yet to materialize. Advocate Kishan Chand Jain expressed concern regarding the inclusion of the provision for a maximum treatment amount of Rs. 1,50,000 and a limitation of seven days for treatment coverage in the draft note. The Supreme Court observed that these issues must be addressed to fulfil the scheme's primary objective of saving lives.

The Supreme Court directed the Central Government to frame the scheme under Section 162(2) by March 14, 2025. The scheme's details, along with an affidavit explaining its implementation, must be submitted to the Court by March 21, 2025. The matter is scheduled for further hearing on March 24, 2025.

Hit-and-Run Compensation Scheme

The Court also reviewed the implementation of the hit-and-run compensation scheme under Section 161 of the MV Act. The Court had previously observed the need for directions under the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, to facilitate seamless compensation disbursement.

Data submitted showed that from April 1 to August 31, 2024, 1,662 claimants received compensation, but 1,026 claims remained pending. The General Insurance Council (GIC) cited deficiencies in submitted documents as the primary reason for delays.

Amicus Curiae Gaurav Agrawal informed the Court that GIC also agreed to process claims based on seven specified documents, including FIR copies, injury or post-mortem reports, death certificates, bank passbooks, and identity proofs. The Court directed GIC to coordinate with claim settlement officers to address deficiencies and ensure claims are processed promptly.

“It is pointed out in the note that 921 claims were pending as of 31st July, 2024, as there were deficiencies in the documents submitted. GIC, in coordination with the concerned claim settlement officer, should contact the claimants and ensure that major deficiencies are cleared so that the claims can be processed”, the Court ordered.

Development of Digital Portal

Highlighting the need for efficient claim processing, the court noted GIC's ongoing work to develop a portal. The portal aims to facilitate document uploads, notify states of deficiencies, and provide claimants with updates. The court directed GIC to complete the portal by March 14, 2025, and report compliance on the next hearing date.

Background

The Court passed this order in a writ petition filed by Dr. S. Rajaseekaran, Chairman and Head of Department of Orthopaedic Surgery, Ganga Hospital, Coimbatore on the issue of road accident deaths.

An IA was filed by Advocate Kishan Chand Jain seeking directions for the implementation of cashless treatment for individuals injured in road accidents mandated under Section 162 of the MV Act. The second IA pertained to the payment of compensation to victims or their dependents in hit-and-run cases, as provided under Section 161 of the MV Act.

The Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, effective from April 1, 2022, outlines the compensation amounts as Rs. 2 lakhs for fatalities and Rs. 50,000 for injuries in cases where the offending vehicle is untraceable. However, the utilization rate of the scheme remains low, as highlighted in previous hearings. Despite 67,387 hit-and-run accidents reported in 2022, only 205 claims were filed during the financial year 2022-23, with 95 being settled, the Court was told.

A report by the Ministry of Road Transport and Highways highlighted that in the past five years, 660 deaths and 113 injury cases in hit-and-run accidents received compensation totalling Rs. 184.60 lakhs. This low rate of claims prompted the Supreme Court to issue several directions on January 12, 2024, including the mandatory duty of police to inform victims about the scheme. The Court also suggested revising the compensation amounts and enhancing public awareness and implementation of the scheme.

On September 2, 2024, the Supreme Court directed all state governments to take immediate steps to implement Section 136A of the Motor Vehicles Act, 1988, which pertains to the electronic monitoring and enforcement of road safety. The Court also directed all state governments to ensure compliance Rule 167A(A) of Central Motor Vehicle Rules by issuing challans on the basis of footage from electronic enforcement devices.

Case no. – WP (C) No. 295/2012

Case Title – S. Rajaseekaran v. Union of India and Ors.

Citation : 2025 LiveLaw (SC) 36