Over 83% poor of UP suffer huge financial loss post-road mishap
The report highlights the disproportionate impact of a road crash on poor households that pushes them into a vicious cycle of poverty and debt.
LUCKNOW : Over 83% of poor families in Uttar Pradesh reported a fall in their income after a road accident of a family member and the financial loss to them amounted to more than seven month’s household income.
Comparatively, it was equivalent to less than one month’s household income for rich families, according to a latest World Bank report.
Titled “Traffic Crash Injuries and Disabilities: The Burden on Indian Society,” the report released by union minister for transport and highways Nitin
Gadkari in Delhi on Saturday highlights the disproportionate impact of a road crash on poor households that pushes them into a vicious cycle of poverty and debt. The study was conducted in collaboration with SaveLIFE Foundation – a national NGO that is focused on road safety. It is based on the survey data collected from four Indian states – UP, Bihar, Tamil Nadu and Maharashtra.
“The decline in household income was more acutely felt in Uttar Pradesh. Over 83% of LIHs and 64% of HIHs reported decline in household income after a road crash, which is higher than the overall figure of 75% and 54% for LIHs and HIHs, respectively. This goes to show the need for greater institutional support in the state, which as we understand, UP is working to develop as part of the new road safety policy,” Piyush Tewari, CEO and founder of SaveLIFE Foundation, said.
The report further reveals that a larger number of cases of property sale, money borrowing and relocation were observed among low income households (LIHs) in comparison to high income households (HIHs).
A larger proportion of HIHs reported out of pocket expenses (OOPE) than LIHs, the report said. In UP as high as 49.1% of household members from LIHs faced difficulty in sleeping after an accident, while 3.2% of household members from HIHs faced the same problem. A total 62.6% of LIHs and 19.4% of HIHs reported that the victim, or a household member, suffered from depression after a crash.
As per the report, OOPE is the payment made directly by individuals at point of service where the entire cost of health, goods or service is not covered under any financial protection scheme.
Significantly, 50.6% of LIHs and 50.5% of HIHs claimed no FIR was filed for road accidents involving a family member.
Tewari furthers said, “The findings of the report identify the areas that require immediate improvements such as efforts towards post-crash emergency care and protocols, insurance and compensation systems.”
In UP, a total of 514 respondents (victims and household members) participated in the survey. Among them, 101 respondents (19.6%) belonged to high income households, and 413 (80.4%) to low income groups.
The OOPE for LIHs was about 5.8% higher than for HIH. Total OOPE in UP was INR 79,433 for LIHs, and INR 75,110 for HIHs.
In as many as 89.8% of LIHs, the victims surveyed admitted to paying OOPE, while 72.3% of HIHs victims admitted to paying OOPE. About 48.2% of LIHs had to arrange for a loan, as opposed to 10.9% of HIH. Further, a larger proportion of LIHs had to resort to selling assets, and taking on extra work. A larger proportion of HIH (89.1%) spent from family savings to cope with the losses than LIH (71.9%).
As low as 7.5% of LIH victims, and 30.7% HIH victims/family members, availed motor vehicle insurance compensation. Among those that availed compensation, just 41.9% of LIH victims and 38.7% of HIH victims received the eligible compensation. In UP, LIH on an average took 73 more days than HIHs to return to their previous occupation, with LIHs taking an average of 129 days to return to their occupation and HIH taking 56 days for the same.