New Penalties for Contractors to Curb National Highway Accidents

The highways ministry has introduced a rule to penalize contractors for multiple accidents on National Highways. Contracts under the BOT model must address crash management if more than one accident occurs annually on a highway stretch. An upcoming cashless treatment scheme will aid road accident victims.


Devdiscourse News Desk | New Delhi | Updated: 02-11-2025 16:53 IST | Created: 02-11-2025 16:53 IST
New Penalties for Contractors to Curb National Highway Accidents
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The highways ministry has announced new measures to penalize contractors who manage segments of National Highways where more than one accident occurs annually under the build-operate-transfer (BOT) model. This decision aims to enhance safety on these roads by enforcing stricter accountability.

Road Transport and Highways Secretary V Umashankar confirmed the revision of BOT documents. Contractors will now be required to undertake crash management and implement corrective steps if two or more accidents occur on the stretches they manage. Penalties will reach Rs 25 lakh, escalating to Rs 50 lakh if a further accident happens the following year.

Additionally, a nationwide cashless treatment scheme for road accident victims is in development, with victims eligible for treatment worth up to Rs 1.5 lakh for the first seven days post-accident. This initiative aims to reduce fatalities by ensuring timely medical care.

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