If this document is not done in the car, petrol and … jail will also be possible

Last update:January 27, 2025, 08:18 IST

Vehicle Insurance -Half of the vehicles are running without insurance in the country. The government is going to tighten the rules to promote insurance compliance. Vehicles that do not have third party insurance will not be given oil and no …Read more

The Ministry of Finance has given some suggestions to the Ministry of Road Transport and Highways.

New Delhi. If you have not got your car insured yet, then get it done soon. Because in the coming days, vehicles whose third-party insurance will not get fuel and fast. Also, there will be no renewal of driving license of the vehicle owner without insurance. The Union Finance Ministry has asked the Ministry of Road Transport and Highways to consider several measures to promote third-party insurance. These include these above suggestions. Under the Motor Vehicles Act, 1988, third-party insurance is mandatory for all vehicles. This is to compensate for the loss done to a third party in an insurance accident. Despite being mandatory, more than half of the vehicles are running without insurance on Indian roads.

An official said that the ministry is working on these proposals and may change the rules soon. Under this, vehicle related services will be linked to insurance cover. Also, instructions will be given to state governments and union territories to ensure strict compliance. It is worth noting that recently the Parliamentary Standing Committee also suggested the government to increase third-party insurance coverage. The committee recommended to promote data integration and e-challan. Also, the states were required for data reporting to monitor vehicle registration and insurance coverage.

Also read- Decline in crude oil, petrol and diesel prices reduced in many parts of the country, know the latest rate

Insurance coverage status
According to the Insurance Regulatory and Development Authority of India (IRDAI), only 50% of the estimated 35-40 crore vehicles running on Indian roads in 2024 have third-party insurance. Under the Motor Vehicles Act, driving without third-party insurance is a crime. If caught for the first time, ₹ 2,000 fine or three months in jail, or both can be there. The penalty for a second time can increase the fine to ₹ 4,000.

Insurance compliance will increase strictly
Rajat Mahajan, partner and automotive sector leader of Deloite, said that the use of Fastag and digital platforms will help increase insurance compliance. In December 2024, Fastag transaction reached ₹ 6,642 crore. If insurance verification is linked to Fastag and other digital services, it can make the process simple and effective. This step will improve data collection and analysis as insurance coverage increases. Government and insurance companies will be able to identify areas with low insurance coverage and prepare appropriate strategies. Mahajan said that increased insurance coverage will comprehensk risk, which will make premium competitors and will get better benefits to policyholders.

Plan of integrated system
Solomon & Company partner Aaron Asrar said that linking third-party insurance, fastag and pollution certificate to Aadhaar can increase the effectiveness of the integrated system. With this, the vehicle owners will be able to manage all the services on the same platform.