Road accidents in India increase poverty, says World Bank report

More than 75% of poor households in India reported a decline in their income as a result of a road crash, says new World Bank report.

The financial loss for the poor amounted to more than seven months of household income, while it was equivalent to less than one month’s income for rich households, says the report titled 'Traffic Crash Injuries and Disabilities: The Burden on Indian Society', released by Union Road Transport Minister Nitin Gadkari.

The study was done in collaboration with SaveLIFE Foundation — a national non-governmental organisation focusing on road safety.

The study conducted across Uttar Pradesh, Tamil Nadu, Maharashtra and Bihar found that 30% of the respondents from low-income families in Tamil Nadu sold or mortgaged their assets to tide over the income loss and the burden of debt. In Maharashtra, 44% of such families had to borrow money for similar reasons.

The study, which covered 2,400 respondents from low and high-income families across both urban and rural areas, found that 44% of households in rural areas reported at least one death after a road accident compared to 11.6% of households in urban areas.

The total average costs (direct and indirect costs combined) borne by high-income households is close to Rs 1.98 lakh after the crash was higher than the total costs borne by low-income households (Rs 1.53 lakh). It said medical costs constituted a bulk of the total costs of low-income households (52% of total costs) followed by loss of productivity or loss of income costs (25% of total costs).

The survey shows that the income decline for low-income rural households (56%) was the most severe compared to low-income urban (29.5%) and high-income rural households (39.5%).

Women bore the burden of road crashes across poor and rich households. About 50% of women were severely affected by decline in their household income after an accident. 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 recommends policy-oriented approaches for saving lives and improving the ability of victims and their families to get back on their feet, including providing immediate financial, medical and legal aid.