Implement Cashless Treatment Scheme For Accident Victims in True Spirit: Supreme Court To Centre

The Supreme Court recently directed the Central Government to ensure that the Cashless Treatment Scheme for Road Accident Victims Scheme, 2025, which was notified on May 5, 2025, is implemented in its true letter and spirit.

The scheme has been framed under Section 162 of the Motor Vehicles Act, 1988, which mandates the government to provide cashless treatment to road accident victims during the “golden hour” – the first hour following a traumatic injury.

A bench of Justice Abhay S Oka and Justice Ujjal Bhuyan also directed the government to file an affidavit by the end of August 2025, detailing the implementation of the scheme and to give wide publicity to the scheme.

“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 court was hearing a case regarding the Centre's delay in implementing the statutory provision. The Court had earlier criticised the government for not acting upon its own law, despite Section 162 being in force since April 1, 2022.

According to the scheme, each road accident victim is entitled to receive cashless treatment of up to Rs. 1.5 lakhs for up to seven days from the date of the accident. The treatment must be provided immediately at designated hospitals once the victim is brought in.

The Court noted in its order that the scheme has now come into effect from May 5, 2025 and objections to the scheme would be considered at the appropriate stage.

The Centre had on April 28, 2025, submitted that the scheme would be notified within one week. During that hearing, the Secretary of the Ministry of Road Transport and Highways (MoRTH) appeared before the Court via video conferencing after being summoned for non-compliance with earlier directions. The Court had noted that despite the coming into force of Section 162 on April 1, 2022, no scheme had been framed, and asked the Secretary to explain the delay.

Justice Oka had remarked that people were dying on highways due to the absence of a treatment scheme and questioned the purpose of building highways without ensuring basic healthcare. The Court was informed that a draft scheme had been prepared but faced obstacles due to issues raised by the General Insurance Council (GIC).

The Court had directed that if GIC was not cooperating, another agency should be appointed. The Secretary assured the Court that this would be done.

Case no. – WP (C) No. 295/2012

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

Click Here To Read/Download Order