Read Time: 14 minutes

Synopsis

The Supreme Court on January 8, 2025, directed the Central Government to promptly make a scheme in terms of Sub Section (2) of Section 162 of the Motor Vehicle Act by March 14, 2025, to provide cashless treatment to injured victims in road accident cases in 'golden hour'.

A bench of Justices Abhay S Oka and Augustine George Masih reminded the government of its statutory obligation while making it clear that no further time would be granted for the purpose.

"The provision made in Section 162 for framing a scheme for providing cashless treatment in the golden hour seeks to uphold and protect the right to life guaranteed by Article 21 of the Constitution. Moreover, it is a statutory obligation of the central government to frame the scheme. More than reasonable time was available to the central government," the bench said.

The bench emphasised that once the scheme is framed and its implementation starts, it will save the lives of several injured persons who succumb to injury simply because they do not receive requisite medical treatment during the golden hour.

"We, therefore, direct the central government to make a scheme in in terms of SubSection (2) of Section 162 of the MV Act as expeditiously as possible and, in any event, by 14th March 2025. No further time shall be granted," the bench said.

Court directed a copy of the scheme should be placed on record on or before March 21, 2025, together with an affidavit of the concerned officer of the Ministry of Road Transport and Highways explaining the manner in which the scheme will be implemented.

In a 2012 writ petition filed by S Rajaseekaran, court was dealing with the issue of cashless treatment for the victims of motor vehicle accidents. Section 162 of the Motor Vehicles Act, 1988, was brought into force on April 1, 2022.

Section 162 (2) stated, "The central government shall make a scheme for the cashless treatment of victims of the accident during the golden hour and such scheme may contain provisions for creation of a fund for such treatment.”

Referring to the definition of the golden hour in Section 2 (12-A), the bench noted the one hour following a traumatic injury suffered in a motor accident is the most crucial hour.

"In many cases, if required medical treatment is not provided within the golden hour, the injured may lose his life. Section 162 is crucial in the present scenario where motor accident cases are ever-increasing," the bench said.

Along with an affidavit filed on April 5, 2024, the central government placed on record a draft concept note prepared by the Ministry of Road Transport and Highways of the Government of India. However, no such scheme had been brought into existence.

The counsel appearing for the applicant expressed several concerns about the contents of the concept note. He pointed out that the concept note provided for payments of a maximum amount of Rs 1,50,000 under the scheme. According to him, the concept note stated that under the scheme, treatment would be given for only seven days.

"We find that these two concerns must be addressed while framing the scheme. The scheme must be such that it serves the object of saving lives by providing immediate medical treatment in the golden hour," the bench said.

Thus, the court noted, the scenario which emerged was that Section 162, which incorporates the obligation on part of the central government to make a scheme for cashless treatment of victims of accidents during the golden hour and Section 164-B, which provides for the creation of motor vehicle accident fund, were brought on the statute book from April 1, 2022.

"However, the scheme, as contemplated by Sub-Section (2) of Section 162, has not seen the light of the day," the bench said.

The court also noted a motor vehicle accident fund had been created to provide treatment during golden hour in terms of Sub-Section (2) of Section 162, but the scheme did not exist.

Under the Rules framed by notification of February 25, 2022, in particular, Rule 11(c), it is provided that the GI Council would administer the hit and run compensation amount from the motor vehicle accident fund under the supervision of the Trust. Rule 12 lays down a complete mechanism for disbursement from the fund for cashless treatment, the court pointed out.

The scheme is to be implemented by insurers as provided by Sub Section (1) of Section 162, it said.

The bench said when a person gets injured in a motor accident, his near and dear ones may not be around. Therefore, there is no one to help him. However, the injured person must receive the required medical treatment in the golden hour, since it is essential for his survival.

"Every human life is precious. Despite this, we find that the treatment needed in the golden hour is denied due to various reasons. The hospital authorities sometimes wait till the arrival of the police. They are always worried about the payment of charges for the treatment, which in a given case can be on higher side," the bench said.

That is a reason why Sub-Section (1) of Section 162, which starts with a non-obstante clause, provides that the insurance companies carrying on general insurance business in India would provide for the treatment of road accident victims, including during golden hour in accordance with the scheme made under the MV Act, the court pointed out.

The court scheduled the matter for further consideration on March 24.

The bench also looked into the data of hit and run scheme up to August 31, 2024. The data showed that between April 1, 2024 and August 31, 2024, 1662 claimants received compensation under the scheme, but 1026 claims remained pending.

"We direct GIC to process the claims on the basis of the documents. It is pointed out in the note that 921 claims were pending as of 31st July, 2024, as there were deficiencies in the documents submitted. GIC, in coordination with the concerned claim settlement officer, should contact the claimants and ensure that major deficiencies are cleared so that the claims can be processed," the bench said.

The court also directed the GIC to complete the work of developing the portal at the earliest so that it becomes easier for the authorities to upload the documents on the portal.

"The portal can provide for informing the concerned States about the deficiencies in the documents. If the States are informed about the deficiencies, the victims can get information on the delay in processing the claim. We direct GIC to complete the work of setting up the portal at the earliest and report compliance to this court about the work done by 14th March 2025," the bench ordered.

Case Title: S Rajaseekaran Vs Union of India & Ors