A study by the Center of Excellence for Road Safety assesses government costs from road accidents to help policymakers plan interventions based on economic costs.
Researchers at the Indian Institute of Technology Madras have called for increased government investment in road safety to reduce the impact of accidents on the economy.
Thiru. The Minister for Health, Medical Education and Family Welfare of the Government of Tamil Nadu, Ma Subramanian, on Sunday (March 13, 2022) called on the Director of IIT Madras, Prof. V. Kamakoti and the report’s author published the report in the presence of Professor Venkatesh Balasubramanian. , Faculty, Department of Engineering Design, IIT Madras, and the first author of the report was Dr. Nizina M. Nazar, Senior Project Scientist, Department of Engineering Design, IIT Madras.
The study, titled ‘Socio-Economic Cost of Road Crash in Tamil Nadu’, was conducted by RBG Lab of Center of Excellence for Road Safety (CoERS) / IIT Madras. It has come up with three different estimates of socio-economic impact. These estimates are considered medical costs, loss of tax revenue, which is considered loss of production, loss of people, loss of vehicles, loss of civilians, and administrative costs such as police, insurance, legal.
One of the highlights of the study is that it includes the cost of travel delays due to road accidents and efficiency tax, which may force the government on society to revive the economy after bearing this huge cost.
The total impact in financial terms has come from using the hybrid human capital method, which uses the current value of the potential earnings of the victim of the accident. A sensitivity test is also performed using the established WTP standard transfer method and the iRAP method to calculate human cost. Wherever possible this study has considered other studies around the world and in India as well.
The key findings of this study based on Tamil Nadu State Crime Records Bureau (SCRB) data from 2019 include:
- Socio-economic cost of road accidents in Tamil Nadu for 2019 was INR 21,078.83 crore – INR 56,543.29 crore
- This is 0.94-2.5 percent of the state’s GDP
- The economic cost of each road accident in Tamil Nadu is estimated at Rs 87,45,154.79.
- It was also found that the cost for a serious injury related to a road accident was Rs 1,69,544.82.
- Further, the report estimates the direct cost of road traffic accidents to the Tamil Nadu government to the tune of over Rs 12,912.13 crore.
- Additional health care is required for 2.34 percent of this cost.
- It should be noted that due to road accidents, the entire health, welfare and family budget can be overwhelmed by these expenses.
Rehabilitation Bioengineering Group (RBG Labs) in the Engineering Design Department of IIT Madras is an interdisciplinary group that deals with various issues of social need to enhance the quality and productivity of people, processes and products. CoERS at RBG Labs works on multiple aspects of road safety, including vehicle engineering, road engineering and human components engineering. CoERS acts as a think-tank for MoRTH and other policy makers to provide advice on road safety.