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SUPREME COURT OF INDIA
ABHAY S. OKA, AUGUSTINE GEORGE MASIH, JJ.
S. Rajaseekaran – Petitioner
Versus
Union Of India & Ors. – Respondents
Writ Petition (C) No. 295 of 2012
Decided On : 08-01-2025
Motor Vehicles Act, 1988 – Sections 162 and 164-B read with Section 2 (12-A) – Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022 – Rules 11 and 12 – Constitution of India – Article 21 – Cashless treatment for victims of motor vehicle accidents – Scheme for Golden Hour – 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 golden hour, injured may lose his life – When a person gets injured in a motor accident, his near and dear ones may not be around and there is no one to help him – However, injured person must receive required medical treatment in golden hour, since it is essential for his survival – Every human life is precious. Despite this, treatment needed in golden hour is denied due to various reasons – Hospital authorities sometimes wait till arrival of Police – They are always worried about payment of charges for treatment, which in a given case can be on higher side – It is obligation of Central Government under Sub-Section (2) of Section 162 to make a scheme for cashless treatment of accident victims during golden hour – Provision made in Section 162 for framing a scheme for providing cashless treatment in golden hour seeks to uphold and protect right to life guaranteed by Article 21 of Constitution – Moreover, it is a statutory obligation of Central Government to frame scheme – Once scheme is framed and its implementation starts, it will save lives of several injured persons who succumb to injury simply because they do not receive requisite medical treatment during golden hour – Central Government directed to make a scheme in terms of Sub-Section (2) of Section 162 of MV Act as expeditiously as possible and, in any event, by 14th March 2025 – No further time shall be granted – A copy of scheme shall be placed on record on or before 21st March 2025, together with affidavit of concerned officer of Ministry of Road Transport and Highways explaining manner in which scheme will be implemented. (Paras 1, 3, 4 and 8)
Facts of the case:
Point in issue is cashless treatment for victims of motor vehicle accidents.
Findings of Court:
As far as portal to be developed by GIC is concerned, it is a work in progress. GIC must complete work at the earliest so that it becomes easier for authorities to upload documents on portal. Portal can provide for informing concerned States about deficiencies in documents. If States are informed about deficiencies, victims can get information on delay in processing claim.
Result : Directions issued. Petition listed for next hearing.
The judgment addresses cashless treatment for victims of motor vehicle accidents, emphasizing the "golden hour" scheme under the Motor Vehicles Act, 1988. (!) (!)
Section 162(1) requires insurance companies carrying on general insurance business in India to provide treatment for road accident victims, including during the golden hour, notwithstanding other laws. (!)
Section 162(2) imposes a statutory obligation on the Central Government to frame a scheme for cashless treatment of accident victims during the golden hour, which may include provisions for creating a fund. (!)
"Golden hour" is defined as the one-hour period following a traumatic injury during which prompt medical care has the highest likelihood of preventing death. (!)
Treatment during the golden hour is crucial for survival in motor accidents, as delays can lead to loss of life; every human life is precious and must be protected. (!) (!)
Hospitals often delay treatment waiting for police arrival or due to concerns over payment of high charges, denying victims timely care. (!)
Section 164-B mandates the Central Government to constitute the Motor Vehicle Accident Fund, credited from notified payments, grants, prior fund balances, and other sources, to provide compulsory insurance cover to road users. (!) (!) (!)
The Fund is to be utilized for treatment of road accident victims under the Section 162 scheme, hit-and-run compensation, and other prescribed purposes, with maximum liability amounts prescribed by the Central Government. (!) (!) (!)
Payments from the Fund for treatment are deductible from insurance claims paid to victims. (!)
The Fund is managed by an authority with insurance expertise, capability to handle funds, and other criteria, with accounts audited by the Comptroller and Auditor-General of India and laid before Parliament. (!) (!) (!)
Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022 (Rules 11 and 12) provide for Fund utilization and disbursement for cashless treatment, but require the Section 162(2) scheme to be effective. (!)
A draft concept note exists, but concerns include limits like Rs.1,50,000 maximum payment and seven-day treatment cap; the scheme must prioritize saving lives through immediate golden hour treatment. (!)
The scheme under Section 162(2), supported by Section 164-B and Rules, upholds the right to life under Article 21 of the Constitution and is a statutory mandate overdue since 1st April 2022. (!)
Central Government directed to frame and notify the scheme by 14th March 2025 (no extensions), place it on record with implementation affidavit by 21st March 2025; matter listed on 24th March 2025. (!) (!)
For hit-and-run claims, GIC to process based on seven specified documents (FIR, post-mortem/injury report, death certificate, bank details, claimant/victim ID proofs, cashless treatment receipts); clear deficiencies with claimants. (!) (!)
GIC's portal for document upload is in progress; to be completed urgently by 14th March 2025, with features to notify States of deficiencies for faster claims; compliance report required. (!)
Petition listed for 24th March 2025 for further directions on compliance. (!) (!)
ORDER :
(Abhay S. Oka, J.)
1. By this order, we are dealing with the issue of cashless treatment for the victims of motor vehicle accidents. Section 162 of the Motor Vehicles Act, 1988 (for short, ‘the MV Act’) was brought into force from 1st April 2022. Section 162 reads thus:
“162. Scheme for golden hour. —
(1) Notwithstanding anything contained in the General Insurance Companies (Nationalisation) Act, 1972 (57 of 1972) or any other law for the time being in force or any instrument having the force of law, the insurance companies for the time being carrying on general insurance business in India shall provide in accordance with the provisions of this Act and the schemes made under this Act for treatment of road accident victims, including during the golden hour.
(2) 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.”
(emphasis added)
To understand the object of the scheme for the golden hour, it is necessary to consider the definition of the golden hour in Section 2 (12-A), which reads thus:
“(12-A) “golden hour” means the time period lasting one hour following a traumatic injury during which there is highest likelihood of preventing death by providing prompt medical care.”
As can be seen from the definition, 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.
2. In 1989, in the case of Parmanand Katara v. Union of India and Ors, (1989) 4 SCC 286, this Court observed that every injured citizen brought for medical treatment to a hospital should be instantaneously given medical aid to preserve life. Thereafter, the procedural criminal law should be allowed to operate in order to avoid death.
3. 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. 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 shall provide for the treatment of road accident victims, including during golden hour in accordance with the scheme made under the MV Act.
4. It is the obligation of the Central Government under Sub- Section (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. Section 164-B reads thus:
“164-B. Motor Vehicle Accident Fund :-
(1) The Central Government shall constitute a Fund to be called the Motor Vehicle Accident Fund and thereto shall be credited—
(a) payment of a nature notified and approved by the Central Government;
(b) any grant or loan made to the Fund by the Central Government;
(c) the balance of the Fund created under scheme framed under Section 163, as it stood immediately before the commencement of the Motor Vehicles (Amendment) Act, 2019; and
(d) any other source of income as may be prescribed by the Central Government.
(2) The Fund shall be constituted for the purpose of providing compulsory insurance cover to all road users in the territory of India.
(3) The Fund shall be u
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