With nearly 57 percent of vehicles traversing the roads of India lacking insurance coverage, the Insurance Regulatory and Development Authority of India (IRDAI) has directed general insurers to engage with transportation authorities across 28 states and eight union territories to enforce mandatory insurance for these uninsured vehicles.
Addressing the Pervasive Challenge of Uninsured Vehicles in India: Government Initiatives and Collaborative Measures
The Insurance Information Bureau of India (IIB), established by the IRDAI, has underscored the persistent issue of uninsured vehicles in the country, revealing that 57 percent of vehicles on the roads remain without insurance, with more than half of the states reporting over 50 percent of vehicles being uninsured.
Recognizing the gravity of the situation, the Union government has communicated with state chief secretaries, urging them to ensure the insurance coverage of all vehicles on the roads. The alarming statistic reveals that over 54 percent of vehicles in India lack insurance, prompting a proactive approach from state chief secretaries to implement measures ensuring the insurance of all vehicles.
Enhancing Vehicle Insurance Coverage: Collaborative Measures and Data Utilization for Effective Solutions
To facilitate this process, state chief secretaries are tasked with coordinating with the State Transport Commissioner to guarantee the coverage of all vehicles.
The State Transport Commissioner, in turn, can access data on uninsured vehicles from the National Informatics Center (NIC), which maintains an updated, state-specific list of all uninsured vehicles in India. This concerted effort seeks to address the critical issue of a significant proportion of vehicles operating on Indian roads without the essential protection provided by insurance.
