Lok Sabha Question No. 4572 (UNSTARRED), answered on 2025-03-27
Subject: Implementation of Section 162(1) of the Motor Vehicle  Act, 1988
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Shri Rajkumar Chahar

## GOVERNMENT OF INDIA

## MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION NO. 4572

ANSWERED ON 27 TH  MARCH, 2025

## IMPLEMENTATION OF SECTION 162(1) OF THE MOTOR VEHICLE ACT, 1988

4572.         SHRI RAJKUMAR CHAHAR:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a)  whether the Government has formulated a scheme under Section 162(1)  of  the  Motor  Vehicles  Act,  1988,  requiring  general  insurance companies  to  provide  treatment  for  road  accident  victims,  including during the golden hour, if so, the details thereof; (b) whether the Government is aware that while efforts are being made for a cashless treatment scheme under Section 162(2), no scheme has been formulated under Section 162(1) so far, if so, the details thereof; (c)  the  reasons for not formulating any scheme under Section 162(1) despite the financial responsibility being placed on insurance companies and not the Government; (d) whether the Government is considering any proposal for implementing  a  scheme  under  Section  162(1),  if  so,  the  steps  being taken to ensure its timely implementation; and (e)  the  measures  the  Government  is  taking  to  ensure  compliance  by general  insurance  companies  with  their  obligations  under  Section
- 162(1) regarding the treatment of road accident victims?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

## (SHRI NITIN JAIRAM GADKARI)

(a)  to  (e)  As  per  section  162  of  the  Motor  Vehicles  Act,  1988, Government has formulated a scheme to provide cashless treatment to the victims of road accidents caused by the use of motor vehicles. The key features of the scheme are summarised as under:

-  Victims are entitled to cashless treatment upto Rs. 1.5 lakh per victim per accident for a maximum period of 7 days from date of accident.
-  To be implemented  by  National  Health Authority (NHA)  in coordination with State Governments (Police, empaneled hospitals, State Health Agency (SHA)) etc.
-  Ayushman  Bharat  Pradhan  Mantri-Jan  Arogya  Yojana  (AB  PMJAY)  packages  for  trauma  and  polytrauma  care  have  been  coopted.
-  Claims raised by hospitals for providing treatment to be reimbursed from the Motor Vehicle Accident Fund.

Government  in  the  Ministry  of  Road  Transport  and  Highways (MoRTH), along with National Health Authority (NHA), has implemented pilot  program  for  providing  cashless  treatment  to  victims  of  road accidents in the Union Territories of Chandigarh and Puducherry and States of Assam, Haryana, Punjab and Uttarakhand. The ongoing pilot program under implementation is aimed at further  strengthening  the scheme through on-ground validation and assessment in collaboration with  all  stakeholders,  while  also  ensuring  operational  readiness  of States/Union Territories for pan India launch of the Scheme.

Further,  the  Government  has  constituted  the  Motor  Vehicle Accident Fund as per the mandate of section 164B of Motor Vehicles Act,  1988,  which  is  to  be  utilised,  inter  alia,  for  treatment  of  the persons injured in the road accidents in accordance with the scheme framed under section  162  of  the  Motor  Vehicles  Act,  1988.The  Fund includes  contributions  pooled  from  general  insurance  companies  as well as budgetary grant by the Government.

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