For the scheme, the Ministry of Road Transport and Highways (MoRTH) will set up a Motor Vehicle Accident Fund, reported Press Trust of India. The Fund will have contributions from insurance companies through the General Insurance Council for insured vehicles and for hit-and-run-cases.
According to the central government, the Council will bear expenses incurred on victims of accidents involving insured vehicles and in ‘hit and run’ cases, while the Ministry will bear the costs for victims of motor crashes involving uninsured vehicles.
India has one of the highest road accident rates in the world, with about 500,000 road accidents per annum, in which about 150,000 people are killed and about 300,000 disabled.
The National Health Authority’s IT platforms which are used for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PMJAY) may be leveraged to implement the cashless medical treatment for road accident victims. AB PMJAY is the government-backed health insurance scheme for around 500m people in the low-income group.
All road accident victims, whether Indian or foreigner, will be considered eligible for the scheme as its beneficiary.
(SOURCE: Asia Insurance Review- July 2, 2020)
