No Insurance, No Fuel? Supreme Court Proposes New Rule

New Delhi: Vehicle owners may soon face another major consequence for driving without valid insurance. The Supreme Court has proposed a system under which vehicles without valid insurance could potentially be denied petrol or diesel at fuel stations.

Follow MahaENews-X on: Follow MahaENews on Instagram

The proposal aims to ensure that vehicle owners renew their insurance on time and reduce the number of uninsured vehicles operating on Indian roads. The court has also proposed linking insurance data with fuel stations and road surveillance systems.

56% Vehicles Reportedly Without Insurance

During the hearing, a bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra expressed concern over the large number of vehicles reportedly running without valid insurance across the country.

According to the data presented before the court, India has around 30.4 crore registered vehicles, of which approximately 16.5 crore vehicles are reportedly uninsured. Two-wheelers account for a significant share of these uninsured vehicles.

The court observed that uninsured vehicles can create serious difficulties for accident victims seeking compensation after road crashes.

Insurance Data to Be Linked With Petrol Pumps

The Supreme Court has directed the Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Road Transport and Highways to work on a pilot project for the proposed system.

Under the proposed mechanism, a vehicle’s insurance status could be linked directly with the fuel station’s system. If the insurance is found to be invalid or expired, the fuel dispensing system could potentially refuse to provide petrol or diesel.

The move is aimed at creating an additional mechanism to encourage vehicle owners to maintain valid insurance coverage.

ANPR Cameras Could Trigger Automatic E-Challans

The court has also proposed the use of Automatic Number Plate Recognition (ANPR) cameras to identify vehicles operating without valid insurance.

Traffic police and other authorities have been directed to explore handheld devices or mobile applications connected with the VAHAN portal and the Insurance Information Bureau database.

Under the proposed system, when an uninsured vehicle is detected by an ANPR camera, an e-challan could be generated automatically and sent to the vehicle owner.

Penalty for Driving Without Insurance

Under Section 146 of the Motor Vehicles Act, driving a vehicle without mandatory third-party insurance is an offence.

For a first offence, the vehicle owner can face imprisonment of up to three months, a fine of up to ₹2,000, or both.

For a subsequent offence, the punishment can include imprisonment of up to three months and a fine of up to ₹4,000.

What Should Vehicle Owners Do?

Experts advise vehicle owners to regularly check the validity of their vehicle insurance and renew the policy before it expires.

If the proposed fuel station and automated e-challan system is implemented, vehicles without valid insurance could face additional restrictions, including the possibility of being denied fuel and receiving automatic traffic challans.

Translated Quotes / Main Points (As Is)

“The Supreme Court has proposed a system to deny fuel to vehicles without valid insurance.”

“Around 56% of registered vehicles in the country are reportedly running without insurance.”

“Insurance data could be linked directly with petrol pump systems.”

“ANPR cameras could automatically generate e-challans for uninsured vehicles.”

“Driving without mandatory third-party insurance is an offence under Section 146 of the Motor Vehicles Act.”

Follow MahaENews-X on: Follow MahaENews on Instagram