"It Will Save The Lives Of Several Injured Persons": Supreme Court Directs Centre to Formulate 'Golden Hour' Scheme On Cashless Treatment For Motor Accident Victims By 14 March 2025
The Supreme Court directed the Centre to frame the 'Golden Hour' scheme on cashless treatment for motor accident victims by 14 March 2025.
The Court observed that the provision made in Section 162 of the Motor Vehicles Act 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.
The Apex Court also asked the GIC to expeditiously complete the work of setting up the portal which can inform the concerned States about the deficiencies in the documents.
The Division Bench comprising Justice Abhay S. Oka and Justice Augustine George Masih said, ““It is the obligation of the Central Government under SubSection (2) of Section 162 to make a scheme for cashless treatment of accident victims during the golden hour. It is provided that such a scheme may contain provisions for creating a fund for such treatment. Simultaneously with Section 162, Section 164-B was brought on the statute book.”
The Apex Court was dealing with the issue of cashless treatment for the victims of motor vehicle accidents. Section 162 of the Motor Vehicles Act, 1988 (MV Act) was brought into force from April 1, 2022.
The Bench explained that as per the definition of Golden Hour under section 162, 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.
It was further noticed 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. However, 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 shall provide for the treatment of road accident victims, including during golden hour in accordance with the scheme made under the MV Act.
It was clarified by the Bench that Section 162, which incorporates the obligation on the 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 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 to frame the scheme under Sub-Section (2) of Section 162. 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”, it added.
The Bench thus ordered, “We, therefore, direct the Central Government to make a scheme 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. A copy of the scheme shall be placed on record on or before 21st March 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.”
The data of hit and run scheme up to August 31,2024 was also placed before the Bench. On this aspect, the Bench ordered, “We direct GIC to process the claims on the basis of the documents mentioned above. 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.”
Noting that the portal to be developed by GIC is a work in progress, the Bench said, “GIC must complete the work 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…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. Further direction can be issued on the next date after considering the response of GIC. List the petition for directions for reporting compliance with this order on 24th March 2025.”
Cause Title: S. Rajaseekaran v. Union of India & Ors. (Neutral Citation: 2025 INSC 45)
