Supreme Court Proposes ‘No Insurance, No Fuel’ Pilot as 56% of Vehicles Run Without Valid Insurance

The Supreme Court has expressed serious concern over the large number of uninsured vehicles on Indian roads, noting that nearly 56 per cent of vehicles are operating without valid insurance. In response, the apex court has directed the Centre to consider launching a pilot project based on the principle of “no insurance, no fuel” to improve compliance and enhance road safety.

A bench comprising Justices Sanjay Karol and Augustine George Masih also ordered an extension of the mandatory third-party motor insurance period for newly registered vehicles. Under the revised directions, new cars must now have four years of third-party insurance coverage, while new two-wheelers will require six years of coverage.

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The court recalled that in 2018 it had made it compulsory for new cars to be sold or registered with three years of third-party insurance and new two-wheelers with five years of such coverage.

Observing that the earlier directions have not achieved the desired results even after eight years, the bench noted that a significant number of vehicles continue to remain uninsured.

“Despite eight years having passed since the earlier directions, a large number of vehicles remain uninsured. While the Insurance Regulatory and Development Authority of India (IRDAI) and the General Insurance Council (GIC) recommended against extending the insurance period, we are of the view that increasing it by one year is in the interest of road safety,” the bench observed.

The proposed measures are aimed at improving insurance compliance, ensuring compensation for accident victims, and strengthening road safety across the country.

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(This story is published from a syndicated feed)

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