Evaluating the impact of road accidents on the economy

Abstract

The occurrence of road accidents has had a significant impact on the country's economy, and it is affected by injury and crash related costs. A comprehensive study of costs incurred due to road accidents and how it affects the economy of the country is conducted in this study. The costs are classified according to their impact on the economy and according to the manner in which the costs are incurred. Basically, costs are estimated based on the data from insurance companies and other state authorities such as the Ministry of Justice. A detailed review of direct and indirect costs or losses including economic burden due to deaths, permanent disabilities, economic inactivity, medications, property damages, etc. is conducted in the study. The final output of the study is a mathematical relationship which represents the annual economic impact from road accidents and weights of different types cost components indicate the individual contribution to the total impact. This relationship can be used to predict the future impacts on the economy based on the past accident patterns. In addition to that, factors affecting the costs or losses are examined. This would be a valuable source for decision makers to monitor economic losses due to road accidents and take necessary precautions.