The Supreme Court has strongly directed the Central Government to ensure complete and sincere implementation of the Cashless Treatment Scheme for Road Accident Victims, 2025, which officially came into effect on May 5, 2025.
This scheme is framed under Section 162 of the Motor Vehicles Act, 1988, and aims to provide cashless medical treatment to road accident victims during the "golden hour", i.e., the first crucial hour after a traumatic injury.
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A Bench of Justice Abhay S. Oka and Justice Ujjal Bhuyan ordered the government to file a detailed affidavit by August 2025, listing out how the scheme has been implemented, including the number of people who received treatment.
"We direct the Central Government to ensure that the scheme is implemented in its true letter and spirit. We direct the Central Government to file an affidavit by end of August, 2025 setting out the details of the implementation of the scheme by giving details such as number of beneficiaries who received cashless treatment under the scheme. The Central Government shall give wide publicity to the scheme."
The direction came during a hearing where the Court addressed the Centre's delay in implementing Section 162, which has been in force since April 1, 2022. The Court had earlier criticised the government for its inaction despite the law being in place.
As per the scheme, every accident victim is entitled to free treatment up to ₹1.5 lakh for a period of seven days from the date of the accident. Treatment must be provided immediately at designated hospitals when the victim is admitted.
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The Court observed that the scheme had now officially started from May 5, 2025, and any objections or issues would be addressed at the proper stage.
Earlier, during the April 28, 2025 hearing, the Secretary of the Ministry of Road Transport and Highways (MoRTH) appeared before the Court via video call, after being summoned due to the government’s failure to act on earlier directions. The Court questioned the reasons for delay even though Section 162 was effective from April 2022.
Justice Abhay Oka stated, “People are dying on highways because of the absence of a treatment scheme. What is the point of building highways if basic healthcare isn’t ensured?”
The Court was informed that though a draft scheme had been prepared, its implementation was delayed due to objections raised by the General Insurance Council (GIC).
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The Court warned, “If GIC is not cooperating, then another agency must be appointed to execute the scheme.”
The Secretary assured the Court that necessary action would be taken to resolve the issue and implement the scheme without further delay.
Case no. – WP (C) No. 295/2012
Case Title – S. Rajaseekaran v. Union of India and Ors.
