'56% of Vehicles Are Uninsured': Supreme Court Seeks Strict Action Against Rule Violators

New Delhi: The Supreme Court on Tuesday took a tough stand on the crores of vehicles running on the roads without insurance. The court said that if a vehicle does not have valid third party insurance then the provision of not providing fuel from the petrol pump should be seriously considered. The court has asked the Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Road Transport and Highways (MoRTH) to prepare a pilot project in this regard. The court believes that if this happens, the number of uninsured vehicles will reduce and the problems faced by victims of road accidents in getting compensation will also reduce.

What reason did the court give?

During the hearing, the bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra said that a large number of vehicles in the country are running without valid insurance. According to the data placed before the court, out of more than 30 crore registered vehicles, about 16.5 crore are not insured. That means more than half of the vehicles are not following the mandatory conditions of the Motor Vehicles Act. The court said that this situation is extremely worrying.

How will the new system work?

The court suggested that the insurance records of the vehicle be linked to the digital system of petrol pumps. As soon as a vehicle arrives for refuelling, its insurance status should be automatically checked. Fuel may be refused if insurance is not valid. The court says that this will force people to renew their insurance in time.

Will identification be done through cameras?

The bench also stressed greater use of Automatic Number Plate Recognition (ANPR) cameras installed on highways and cities. The court said that these cameras can be linked to the VAHAN portal and the database of the Insurance Information Bureau. With this, uninsured vehicles can be identified and e-challans can be issued directly to their owners. It has also been suggested to the state police to provide mobile apps and handheld devices through which insurance checks can be done on the spot.

What do the current rules say?

Under the Motor Vehicles Act, third party insurance is mandatory for driving any vehicle on a public road. If the rule is broken for the first time, the punishment can be jail up to three months, fine up to Rs 2,000 or both. In case of repeated violation, the fine can increase up to Rs 4,000. The court said that the law already exists, what is needed is its effective implementation.

What changed the rules for new vehicles also?

The Supreme Court has also amended its earlier order. Now the buyer of a new car will have to take third party insurance for four years and the buyer of a new two-wheeler will have to take third party insurance for six years. The earlier periods were three and five years respectively. The court believes that making long-term insurance mandatory in the initial years will reduce the number of uninsured vehicles and increase the chances of accident victims getting timely compensation.