Supreme Court Raises Concern Over Uninsured Vehicles
The Supreme Court has directed the Central Government to prepare a pilot project exploring a “No Insurance, No Fuel” policy after expressing concern that around 56% of vehicles in India are operating without valid insurance.
The court observed that despite third-party motor insurance being mandatory under law, a large number of vehicle owners continue to drive without valid coverage, increasing financial risks for accident victims and placing an additional burden on the legal system.
Pilot Project To Improve Insurance Compliance
The bench suggested that the government design a pilot programme under which fuel stations would deny fuel to vehicles that do not have valid third-party insurance.
The proposal is intended to improve compliance with insurance regulations rather than serve as an immediate nationwide rule. The court asked the Centre to examine the feasibility of implementing such a system using technology-based verification mechanisms.
Third-Party Insurance Period Extended
The Supreme Court also extended the mandatory third-party insurance period for new vehicles.
Under the revised directions, new cars will now require four years of third-party insurance, while new two-wheelers must have six years of mandatory third-party insurance at the time of purchase. The move is aimed at ensuring longer insurance coverage and reducing the number of uninsured vehicles on Indian roads.
Technology-Driven Enforcement Suggested
The court recommended greater use of digital systems to improve enforcement of motor vehicle insurance laws. It also proposed an automatic e-challan mechanism to identify uninsured vehicles and strengthen compliance without requiring extensive manual checks.
The judges stressed that technology could play a crucial role in improving road safety and ensuring vehicle owners comply with legal insurance requirements.
Focus On Road Safety And Victim Protection
The court emphasised that valid motor insurance is essential to protect accident victims and ensure timely compensation. By encouraging higher insurance compliance through stricter enforcement measures, the proposed reforms aim to strengthen road safety while reducing the number of uninsured vehicles across the country.
Summary
The Supreme Court has asked the Central Government to prepare a pilot “No Insurance, No Fuel” project after noting that around 56% of vehicles in India lack valid insurance. The court also extended mandatory third-party insurance to four years for new cars and six years for new two-wheelers, while recommending technology-driven enforcement, including automatic e-challans, to improve compliance.
