New Cashless Treatment Scheme: From Accident to Recovery

The Cashless Treatment for Road Accident Victims Scheme was launched in 2025 notified vide S.O. 2015(E) dated 05.05.2025 under the Motor Vehicles Act, 1988. Furthermore, comprehensive guidelines detailing the process flow, roles and responsibilities of various stakeholders, and the Standard Operating Procedures (SOPs) for its implementation have been issued vide S.O. 2489 (E) dated 04.06.2025.

Key features of the scheme are as under:

Financial Coverage

If someone is injured in a road accident, they can receive treatment costs up to ₹1.5 lakh for a maximum of 7 days from date of accident.

Emergency Treatment

Injured victims will get immediate stabilization treatment for up to 24 hours in non-life- threatening cases and upto 48 hours in life- threatening cases at designated hospitals, subject to police response.

How It Works?

The Scheme is being implemented through the amalgamation of two existing platforms

• eDAR (electronic Detailed Accident Report): used by Police officials for reporting of accidents
• TMS 2.0 (Transaction Management System): Used by hospitals for treatment and payments.

Funding

Hospitals will be reimbursed for treatment costs through Motor Vehicle Accident Fund (MVAF) which is funded through contributions from General Insurance companies for cases where the offending Motor Vehicle is insured and through budgetary support for other-than-insured cases..

Hospital Designation

As per the Scheme guidelines notified vide S.O. 2489 (E) dated 04.06.2025, hospitals empanelled under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) shall be automatically deemed designated hospitals for the purposes of the Scheme. Further, NHA has issued detailed guidelines for designating and onboarding of additional hospitals by States & UTs vide OM S-12018/81/2024 dated 20 May 2025.

Integration of Platforms

The Scheme is being implemented through the amalgamation of two existing platforms, i.e. eDAR and TMS 2.0. The third-party insurance status of the offending vehicle is captured on eDAR as it is integrated with VAHAN Portal.

Hit and Run Compensation

The Government of India is already implementing a separate Compensation to Victims of Hit and Run Motor Accidents Scheme with effect from 01.04.2022. Under this Scheme, a fixed sum of Rs. 2 lakh is to be provided in case of death, and a fixed sum of Rs. 50,000 is to be provided in case of grievous hurt. The compensation is provided to the victims of Hit & Run motor accident as per a time- bound procedure defined under the Scheme.

Difference from Ayushman Bharat

Ayushman Bharat PM-JAY is a pre-identified health insurance scheme. The Cashless Treatment Scheme is open to any road accident victim, making it more widely applicable.

Integration with Emergency Services

To ensure that the road accident victim reaches the designated hospital within golden hour, integration with 112 Emergency Response Support System (ERSS) has been ensured. 112 operator guides victim to the nearest designated hospital and also provides facility of ambulance, if required. The Treatment is provided to victims as per standard Health Benefit packages of NHA. Once the victim is discharged from the Scheme, the hospital will have to submit the claim along with necessary documents to State Health Agency (SHA).

Claim Process

After treatment, hospitals must submit claims to the State Health Agency (SHA), which will verify and approve them. Payments to hospitals are to be made within 10 days after approval. A complete digital trail for the Scheme will exist from the time of accident reporting through the 112 ERSS platform to victim admission, treatment, police authentication, claim processing and final payment.

Awareness Campaign

Besides sensitizing the States/UTs, the Sadak Suraksha Abhiyan has been launched through Central Bureau of Communication to create awareness on programs and policies including the Scheme.

In short, this scheme ensures that road accident victims receive quick and cashless medical treatment, with a streamlined process for hospitals to get paid.