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How Much Can You Get from the Road Accident Fund?
Road accidents are an unfortunate reality on Indian roads, causing thousands of injuries and fatalities each year. Recognizing the urgent need for immediate medical care and financial support, the Government of India has introduced several schemes to help accident victims and their families. The most significant of these is the Motor Vehicle Accident Fund, which now powers the Cashless Treatment of Road Accident Victims Scheme, 2025. This article explores how much you can get from the Road Accident Fund, who is eligible, how the scheme works, and what additional compensation may be available.
Understanding the Road Accident Fund
The Motor Vehicle Accident Fund is a government-backed corpus designed to provide financial assistance for the treatment and compensation of road accident victims. The fund is financed through contributions from vehicle insurance premiums, government allocations, and specific provisions for uninsured vehicles and hit-and-run cases. Its primary goal is to ensure that no accident victim is denied urgent medical care due to lack of funds.
Cashless Treatment Scheme: Key Features and Coverage
Maximum Coverage Amount
The flagship feature of the current scheme is cashless treatment for road accident victims. Under the 2025 guidelines:
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Each accident victim is entitled to cashless treatment up to ₹1.5 lakh per person, per accident.
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This benefit is valid for a maximum of seven days from the date of the accident.
This coverage is designed to ensure that victims receive immediate and comprehensive trauma care during the critical “golden hour” and the subsequent week, which are often decisive for survival and recovery.
Eligibility Criteria
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Who is Eligible?
Any individual injured in a road accident involving a motor vehicle on any Indian road is eligible, regardless of their nationality or insurance status. -
Time Limit for Hospitalization:
The first hospitalization must occur within 24 hours of the accident. If a victim is admitted after this window, they are not eligible for cashless benefits under this scheme, though other compensation avenues may still be available.
Where Can You Get Treated?
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Empanelled Hospitals Only:
Treatment must be availed at designated or empanelled hospitals. All hospitals under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) are automatically included, along with other hospitals that opt into the scheme. -
Quality and Scope of Care:
The scheme covers all emergency trauma and poly-trauma care required in the first seven days, including surgeries, diagnostics, medication, and intensive care.
How the Fund Operates
Payment Process
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Cashless Mechanism:
Victims do not pay anything upfront for treatment at empanelled hospitals. Instead, hospitals raise claims directly with the State Health Agency, which verifies and settles the bill from the Motor Vehicle Accident Fund, usually within 10 days. -
No Direct Payouts to Victims:
The benefit is strictly cashless—payments are made directly to hospitals, not to individuals or families.
Priority Over Other Schemes
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The cashless benefit from the Road Accident Fund takes precedence over any other Central or State Government health schemes.
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Only after the ₹1.5 lakh limit is exhausted can victims use other health insurance or government schemes for further treatment costs.
Additional Compensation for Hit-and-Run and Fatal Accidents
While the cashless scheme covers immediate medical expenses, the Motor Vehicle Accident Fund also provides for statutory compensation in cases of hit-and-run accidents, fatalities, and permanent disabilities.
Hit-and-Run Cases
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Death:
The legal heirs of a person who dies in a hit-and-run accident are entitled to ₹2 lakh. -
Grievous Injury:
Victims who suffer serious injuries in a hit-and-run are eligible for ₹50,000.
Fatal Accidents and Permanent Disability
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Death (Non-hit-and-run):
Under the no-fault liability principle, families of deceased accident victims can claim up to ₹5 lakh. -
Permanent Disability:
Victims with permanent disabilities may receive up to ₹5 lakh, depending on the severity and percentage of disability, as certified by a government medical board.
These amounts are over and above the cashless treatment benefit and are intended to provide long-term financial support to families facing loss of income or ongoing care needs.
How to Access the Road Accident Fund Benefit
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Seek Immediate Medical Attention:
Go to a designated or empanelled hospital as soon as possible after the accident. -
Provide Accident Details:
The hospital will collect basic information about the accident and your identity to initiate the cashless claim. -
Hospital Raises the Claim:
The hospital submits the claim to the State Health Agency, which processes and verifies it before releasing payment from the fund. -
Follow Up for Additional Compensation:
In cases of death or permanent disability, families should file claims with the Motor Accident Claims Tribunal (MACT) or the appropriate authority to access statutory compensation.
Important Points to Remember
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Time is Critical:
The first hospitalization must occur within 24 hours of the accident for cashless benefits. -
Empanelled Hospitals Only:
Always seek treatment at a recognized hospital under the scheme. -
Keep Documentation:
Maintain records of all medical treatment, accident reports, and related documents for future claims. -
Legal Support:
For complex cases or disputes, consult a lawyer specializing in motor accident claims.
Conclusion
The Road Accident Fund, through its cashless treatment scheme, ensures that every road accident victim in India can receive up to ₹1.5 lakh in immediate medical care without worrying about upfront costs. For cases involving death, permanent disability, or hit-and-run, additional statutory compensation is available, potentially totaling several lakhs of rupees. By acting quickly, seeking care at empanelled hospitals, and maintaining proper documentation, victims and families can maximize the support they receive from this vital government initiative.