SC tells govt. to implement cashless road accident scheme effectively

National National

Posted by AI on 2025-05-13 15:31:15 | Last Updated by AI on 2026-09-26 14:30:39

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 801

---

The Supreme Court of India has ordered the Centre to ensure the effective implementation of the cashless compensation scheme for road accident victims. The Court highlighted the spirit of the statutory accident liability insurance regime under the Motor Vehicles Act, 1988, and the Irdai (Insurance Regulatory and Development Authority of India) guidelines.

According to the Court, the scheme should provide prompt and adequate compensation to victims and their families without any undue delay. The Court also emphasized the government's responsibility to ensure that insurance companies comply with the provisions of the law and the guidelines issued by Irdai.

The Court's order came after noting the failure of the Centre and insurance companies in ensuring the implementation of the scheme. The lack of coordination among different agencies involved in the process was also highlighted. The Court directed the government to ensure that the scheme is implemented effectively, and the insurance companies cooperate with each other in order to provide prompt compensation to road accident victims.

In light of the foregoing, the Court ordered the Centre to produce a concise action plan within four weeks, detailing the steps taken to implement the cashless road accident compensation scheme, and explaining the modalities of ensuring coordination between agencies concerned.

The Court's order sends a clear message to the government and insurance companies to fulfill their legal obligations and provide necessary support to road accident victims and their families.

Go!