Contractors Now Liable for Road Accidents on National Highways
The Ministry of Highways has introduced strict penalties for contractors responsible for multiple accidents on National Highway stretches built under the BOT model. Contractors will face fines up to ₹50 lakh for repeat accidents within designated sections.
Key Takeaways
- Contractors face ₹25 lakh penalty for more than one accident in a 500-meter stretch within a year
- Penalty increases to ₹50 lakh for accidents in subsequent years
- Government has identified 3,500 accident-prone areas nationwide
- Revised BOT agreement mandates safety measures and problem fixes
“If more than one accident happens in a particular stretch, say 500 meters, then the contractor will face a penalty of Rs 25 lakh. Penalty will increase to Rs 50 lakh if an accident happens next year,” V Umashankar, Secretary, Road Transport and Highways, said.
The ministry has revised BOT agreements to hold contractors accountable for safety measures and infrastructure fixes following multiple accidents on their stretches.
Highway Construction Models Explained
National Highway projects operate under three primary models with varying concession periods:
- BOT (Build-Operate-Transfer): 15-20 year concession including maintenance
- HAM (Hybrid Annuity Model): 15-year concession period
- EPC (Engineering Procurement Construction): 5-year defect liability for bitumen roads, 10 years for concrete
Additional models include TOT/InvIT projects (20-30 years) and OMT projects (typically 9 years).
Nationwide Cashless Treatment for Accident Victims
The government will soon launch a nationwide cashless treatment scheme for road accident victims, building on insights from the successful pilot project.
According to MoRTH’s May notification, accident victims can receive up to ₹1.5 lakh in cashless treatment during the first seven days at designated hospitals.
This initiative aims to reduce fatalities caused by treatment delays following accidents.
“Any person being a victim of a road accident, arising out of the use of a motor vehicle, occurring on any road, shall be entitled to cashless treatment in accordance with the provisions of this scheme,” the notification said.
The pilot project began in Chandigarh on March 14, 2024, and has since expanded to six additional states.
