The ministry of road transport and highways is contemplating creation of a specialised fund to facilitate cashless treatment in hospitals for road accident victims. The fund will be part of the cashless scheme that was proposed by the Committee on Road Safety & Traffic Management last year.
The idea has been floated to reduce the increasing number of deaths due to road accidents in the country. As per National Crime Records Bureau, over 1.14 lakh people were killed due to road accidents in 2007. This was higher than 1,05,749 deaths in the year before that. World Health Organisation also issued a report last year, saying India has the highest number of road traffic deaths in the world.
Road Transport and Highways minister Kamal Nath discussed the funding of cashless facilities with Insurance Regulatory and Development Authority (Irda), and public and private general insurance companies a week ago. The meeting discussed two options to finance the facilities?budgetary support and creation of a new fund.
?The minister found budgetary financing infeasible at a time when the fiscal deficit is pegged as high as 6.8% this fiscal,? a senior official in the ministry told FE. Considering the second option, Nath formed a committee-consisting of officials from Insurance Regulatory and Development of India, General Insurers? Public Sector Association of India and Reliance Insurance-to evolve a mechanism for creation of the fund called ?Solatium Fund? by January 15.
?The fund is being thought of as the accident victims need to be treated within first 48 hours. However, private hospitals are reluctant to provide such treatment without instant payment or they want to be assured that the cashless medical facilities will be paid for later,? another official said.
?The initial observation is that the insurance companies can increase the accident premium by a fixed amount and contribute the surplus to the fund. The committee has to finalise the modalities of the fund and submit a paper latest by January 15. The committee?s report will then be discussed with the finance ministry and state government,? he added.