(1) Notwithstanding anything contained in the General Insurance Companies (Nationalisation) Act, 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.
Legal Commentary & Landmark Judgments: Section 162
Section 162 of the Motor Vehicles Act, 1988 mandates the Central Government to frame schemes for cashless medical treatment of road accident victims during the critical 'golden hour'.
The section directs the Central Government to formulate a nationwide scheme for providing cashless medical treatment to accident victims during this golden hour, including emergency stabilization and surgical intervention at enrolled public and private hospitals, funded through the Motor Vehicle Accident Fund under Section 164B. Hospitals are strictly prohibited from demanding advance financial deposits before initiating emergency trauma care.
Section 162 transforms emergency trauma care in India. By eliminating hospital demands for advance payment and indemnifying healthcare institutions through the Central Road Safety Fund, the law ensures that road accident victims receive immediate trauma resuscitation during the critical first 60 minutes when medical intervention has the highest probability of saving lives.