Supreme Court asks Centre to make third-party insurance mandatory for vehicles at fuel stations
The Supreme Court pointed out that denying fuel will have a two-fold benefit by not just helping identify uninsured or unregistered vehicles, but also will prompt vehicle owners to ensure that they have valid insurance status
With a significant number of vehicles lacking third-party insurance cover, the Supreme Court on Tuesday asked the Centre to create a pilot project to deny fuel for uninsured vehicles at petrol pumps. The apex court pointed out that denying fuel will have a two-fold benefit by not just helping identify uninsured or unregistered vehicles, but also will prompt vehicle owners to ensure that they have valid insurance status.
With a significant number of vehicles lacking third-party insurance cover, the Supreme Court on Tuesday asked the Centre to create a pilot project to deny fuel for uninsured vehicles at petrol pumps. The apex court pointed out that denying fuel will have a two-fold benefit by not just helping identify uninsured or unregistered vehicles, but also will prompt vehicle owners to ensure that they have valid insurance status.
With a significant number of vehicles lacking third-party insurance cover, the Supreme Court on Tuesday asked the Centre to create a pilot project to deny fuel for uninsured vehicles at petrol pumps. The apex court pointed out that denying fuel will have a two-fold benefit by not just helping identify uninsured or unregistered vehicles, but also will prompt vehicle owners to ensure that they have valid insurance status.
With a significant number of vehicles lacking third-party insurance cover, the Supreme Court on Tuesday asked the Centre to create a pilot project to deny fuel for uninsured vehicles at petrol pumps.
The apex court pointed out that denying fuel will have a two-fold benefit by not just helping identify uninsured or unregistered vehicles, but also will prompt vehicle owners to ensure that they have valid insurance status.
"Such projects would ensure ground-level compliance with the statutory mandate of Section 146 of the MVA. This may be done through the use of ANPR (Automatic Number Plate Recognition) cameras," it said, adding that the Ministry of Petroleum and Natural Gas has, in principle, no objection to the same.
A bench of Justices Sanjay Karol and Prashant Kumar Mishra pointed out that around 56 per cent of vehicles plying on Indian roads remain uninsured, according to the Report of the Standing Committee on Finance 2024-25. This means 16.54 crore vehicles out of 30.48 crore remain uninsured.
The court also flagged the lack of compliance of provisions of the Motor Vehicles Act requiring all vehicles to have a valid third-party insurance policy.
"As deliberated upon in court, the IRDA (Insurance Regulatory and Development Authority) in consultation with the MoRTH (Ministry of Road Transport and Highways) to deliberate and evolve a pilot project whereby fuel for vehicles to be linked with valid insurance status. In the absence thereof, the vehicle concerned would be refused fuel at petrol pumps, until such time that valid insurance is obtained," the bench said.
The top court took note of the number of road accidents on national highways and also the effect of long queues at toll plazas, and directed the Centre to implement pilot projects on certain corridors, substituting the process of stopping at toll plazas with automatic detection of vehicles passing through toll points.
The Supreme Court recalled that in 2018, it mandated purchase of third-party insurance for three years for new cars and five years for new two-wheelers during the time of registration.
"We notice that despite eight years having passed from the said direction, a large number of vehicles remain uninsured. While the IRDA and GIC (General Insurance Council) have recommended that this period not be enhanced, we are of the view that it is in the interest of road safety that the period be enhanced by one year," it observed.
"Therefore, it is directed that henceforth, third-party insurance for four years for new cars and six years for new two-wheelers be required to be purchased. IRDA to immediately issue necessary directions," it added.
The Supreme Court also directed IRDA and the MoRTH to install ANPR cameras in certain states integrated with data from the Insurance Information Bureau (established under IRDA) and the VAHAN portal for issuance of automatic e-challans to uninsured vehicles.
"This is to monitor real-time insurance status of vehicles and impose challans for violations, ensuring compliance with mandatory insurance on the ground," the court said.