Cashless treatment of up to Rs 1.5L for accident victims, says Gadkari

Union Road Transport and Highways Minister Nitin Gadkari announced a new scheme on Tuesday to provide cashless treatment to road accident victims, citing that 1.8 lakh people lost their lives in road accidents in the country last year.

Under the scheme, if the police are informed within 24 hours of an accident, victims will receive cashless treatment for up to seven days or financial support of up to Rs 1.5 lakh. In the case of a fatality due to a hit-and-run accident, the deceased’s immediate family will be compensated with Rs 2 lakh.

“We piloted this cashless project in some states and identified weaknesses. These are being addressed, and the scheme will be beneficial,” Gadkari said during a press conference following a meeting with transport ministers from various states.

Highlighting road safety as top priority, Gadkari said, “In 2024, 1.8 lakh people died in road accidents. Of these, 30,000 deaths were due to not wearing helmets. Another alarming statistic is that 66 per cent of fatal accident victims were aged 18-34. Additionally, 10,000 children died because of faulty entry and exit points in schools and colleges.”

He also noted that accidents caused by unlicensed drivers accounted for 3,000 deaths. Addressing the issue, Gadkari said, “One of our key agendas is the establishment of driving training centres. There is currently a shortage of 22 lakh drivers in the country, and we have introduced a new policy to address this.”

Discussing the vehicle scrapping policy, Gadkari said, “Scrapping old vehicles will boost the automobile sector as materials like aluminium, copper, steel and plastic will be recycled. Maruti Suzuki’s scrapping centre is exporting some of these parts to Japan. Tyre powder is being added to bitumen, fostering a circular economy. The scrapping policy will also create jobs and generate an additional Rs 18,000 crore in GST for Union and state governments.”

Gadkari further highlighted India’s growing automobile sector, stating that the country became the third-largest automobile market globally four months ago, surpassing Japan. “In 2014, when our government took charge, the size of the automobile industry was Rs 7 lakh crore. Today, it has grown to Rs 22 lakh crore,” he added.