Socio-Economic Costing of Road Traffic Accidents:Evidence from Nagpur City, Maharashtra, India

Abstract

Road traffic accidents (RTAs) have become a serious problem worldwide as they incur losses of around 2% of a country's gross domestic product (GDP). RTAs are one of the major causes of death and injury in developing countries like India. To enable governments to take policy decisions on road safety, it is necessary that good research is undertaken to estimate the cost of accidents. This kind of study will help governments make important decisions on investment in traffic safety, improvement of roads and other facilities. On the other hand, evaluation and estimation of the costs of RTAs will help governments ascertain economic feasibility of policy decisions given limited economic resources. Apart from humanitarian losses, the contribution to economic losses from RTAs is alarmingly high, as most people involved in accidents are from the most economically active and productive agegroups of a society. The main objective of this study is to establish the cost components of road accidents in Nagpur city, Maharashtra, India. The methodologies for such studies generally vary according to traffic pattern, modal share, accident pattern, etc. This study makes use of a system dynamics approach, which provides a comprehensive understanding of the problem for Indian cities. Data were collected and collated with major inputs from the Traffic Department of the city for all road accidents from 2010 to 2015. The study found that the costs recorded for RTAs amounted to INR 935.5 million in 2015, which was 0.09% of the city's GDP. In addition, major cost components were evaluated by varying the severity level.

An Exploratory Qualitative Study of the Prevention of Road Traffic Collisions and Neurotrauma in India: Perspectives From Key Informants in an Indian Industrial City (Visakhapatnam)

“…Studies have shown that up to two-thirds of injuries and deaths from RTCs in India are reported in those between the ages of 15 and 40 years [9,31,51,52]. This group includes the most economically active population, most of whom are males [36,52,53]. These ndings are in keeping with the results from our study where participants described the economic impact of RTCs on families and the country as a whole through the loss of this economically productive group.…”

“…A case study carried out in Bangalore, another city in India, showed that affected households tended to resort to borrowing money or selling assets to cope not only with the loss of income but with the cost of caring for the injured family member [54]. Less than 20 percent received any compensation from the government, employees or insurance companies [53]. This is a common scenario in India, where many families end up spending more than 10 times their monthly income for the immediate and longterm management of the RTC victim [55].…”

Estimation of Economic Loss Due to Road Traffic Injuries using Human Capital Method

“…In addition, accidents occasionally cause psychological imbalance (mental imbalance) or tension, which cannot be envisioned. Higher clinical charges or medical costs for major injuries have additionally been said in earlier studies [12]- [13]. The losses related to human capital cost have been comparatively lower than minor injuries, at around 7.7% and 21.5% for most major accidents, as victims could commonly go back to normal condition after restoration.…”

An exploratory qualitative study of the prevention of road traffic collisions and neurotrauma in India: perspectives from key informants in an Indian industrial city (Visakhapatnam)

“…Studies have shown that up to two-thirds of injuries and deaths from RTCs in India are reported in those between the ages of 15 and 40 years [ 10 , 34 , 68 , 69 ]. This group includes the most economically active population, most of whom are males [ 39 , 69 , 70 ]. These findings are in keeping with the results from our study where participants described the economic impact of RTCs on families and the country as a whole through the loss of this economically productive group.…”

“…A case study carried out in Bangalore, another city in India, showed that affected households tended to resort to borrowing money or selling assets to cope not only with the loss of income but with the cost of caring for the injured family member [ 71 ]. Less than 20% received any compensation from the government, employees or insurance companies [ 70 ]. This is a common scenario in India, where many families end up spending more than 10 times their monthly income for the immediate and long-term management of the RTC casualty [ 72 ].…”