Road crashes increase household poverty in India: World Bank report

NEW DELHI: More than 75% of poor households in India reported a decline in their income as a result of a road traffic crash and the financial loss to them amounted to more than seven months’ household income, while it was equivalent to less than one month’s household income for rich households, a World Bank report released on Saturday stated.

The report titled “Traffic Crash Injuries and Disabilities: The Burden on Indian Society”, released by union transport minister Nitin Gadkari on Saturday, highlights the disproportionate impact of a road crash on poor households that pushes them into a vicious cycle of poverty and debt.

Post-crash impact among low income households is more severe compared to high income households with incidence of fatality among poor households as high as 44% in rural areas compared to 11.6% in urban areas, the report noted. The report also brings out the sharp rural-urban divide and the disproportionate impact on women. About 50% women were severely affected by the decline in their household income after a crash. About 40% of women reported a change in their working patterns post-crash, while around 11% reported taking up extra work to deal with the financial crisis.

“The report is an eyeopener... for the government. Each death is precious, whether it is from a poor family or a rich family. Institutional reforms are very much needed, and it is very important to have a streamlined and robust and accessible legal, insurance and health care ecosystem,” Gadkari said.