What percentage of vehicles in the country are uninsured?
During the hearing, a bench of Justices Sanjay Karol and Prashant Kumar Mishra noted that a large number of vehicles are plying on the roads without insurance, thus undermining the purpose of Section 146 of the Motor Vehicles Act. According to available data, approximately 165 million of the approximately 304 million registered vehicles in the country are uninsured. Such vehicles are found to be involved in approximately 22 percent of road accident cases.
Uninsured vehicles will not be available for fuel.
The bench directed that the Insurance Regulatory and Development Authority (IRDAI) and the Ministry of Road Transport and Highways jointly develop a pilot project. Under this, a vehicle’s valid insurance can be linked to the supply of petrol and diesel. If a vehicle’s insurance is not valid, fuel will not be provided.
How will vehicles be identified?
The court also suggested that Automatic Number Plate Recognition (ANPR) cameras installed on highways and major roads be linked to the VAHAN portal and the Insurance Information Bureau’s database. This will enable identification of uninsured vehicles and the issuance of e-challans. Traffic police should also be provided with digital devices or mobile apps that can be used to check vehicle insurance status on the spot.
How much will the challan be?
The Supreme Court also stated that driving without valid third-party insurance is a violation of the Motor Vehicles Act. A first-time offender can face up to three months in jail, a fine of up to 2,000 rupees, or both. Repeated violations can increase the fine to up to 4,000 rupees.
Additionally, the court has amended its 2018 order to extend the mandatory period of third-party insurance for new vehicles. Now, it will be mandatory to purchase third-party insurance for four years with a new car and six years with a new two-wheeler. The court believes this will increase insurance coverage and help road accident victims receive timely compensation.