Government launches game-changing cashless pay for road accident victims

The Union government on Friday announced the launch of PM RAHAT , a nationwide scheme that guarantees cashless, time-bound medical treatment for road accident victims, a move that could transform emergency care in India.

According to official data, India records over 5 lakh road accidents every year , resulting in more than 1.5 lakh deaths and over 4 lakh serious injuries . Experts estimate that nearly half of these fatalities occur because victims do not receive timely medical care especially within the critical “Golden Hour”, the first 60 minutes after a crash when prompt intervention can significantly reduce mortality.

Under PM RAHAT (Road Accident Victim Hospitalization and Assured Treatment) , every eligible accident victim will be entitled to cashless treatment up to ₹1.5 lakh for seven days from the date of the accident. Stabilisation care will be provided for up to 24 hours in non-life-threatening cases and up to 48 hours in life-threatening cases, subject to police authentication through a digital platform.

The scheme is linked with the Emergency Response Support System (ERSS) 112 helpline. Accident victims, Good Samaritans or bystanders can dial 112 to get details of the nearest designated hospital and request ambulance support, facilitating quicker transport to medical facilities.

Hospital reimbursements will be made through the Motor Vehicle Accident Fund (MVAF) . In cases where the offending vehicle is insured, payments will be drawn from contributions by general insurance companies. For uninsured and hit-and-run cases, costs will be met through government budget allocations. Claims approved by the State Health Agency will be settled within 10 days , ensuring that hospitals are paid promptly.

The scheme will operate through an integrated digital framework combining the eDAR accident reporting platform of the Ministry of Road Transport and Highways with the TMS 2.0 system of the National Health Authority, linking accident reporting, police verification, hospital admission, treatment records, claims and payments.

Grievances will be handled at the district level by a Grievance Redressal Officer nominated by the District Road Safety Committee.

Officials and policy analysts say PM RAHAT could be a game changer by assuring hospitals of payment and prioritising rapid care for victims, potentially cutting down preventable deaths on India’s roads.