In the present scenario, Road traffic accidents (RTAs) become an alarming problem over the globe as they leads to approx. 2.6% total loss of country’s gross domestic product (GDP). It is considered as one of the leading cause of mortalities, disabilities and morbidities due to road accidents 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 study will help government to take decisions while planning investment on road safety, facilities on roads, awareness signs and board etc. Meanwhile, estimation and evaluation of economic loss due to RTAs will help governments to frame policy and take important decisions within limited economic resources. Apart from humanitarian losses, there is increase in economic loss due to RTAs because most of the victims involved in accidents are from productive age groups of a society. The main objective of this study is to estimate the cost components of road accidents in two major districts namely Haridwar and Dehradun, Uttarakhand, India. The methodologies for such studies generally vary according to traffic pattern, number of accidents, black spots, population etc. This study makes use of an empirical approach as Cost benefit Analysis consist of Human Capital Approach for cost estimation which provides a vast understanding of the problem for hilly scenario. Secondary data were taken from Transport Research Wing, Government of Uttarakhand for all road accidents from 2016 to 2018 and primary data were collected from randomly selected victims through structured questionnaire and informed consent.