New Delhi: The Supreme Court has suggested that vehicles without valid insurance may be denied fuel at petrol pumps as part of measures to improve compliance with mandatory motor insurance laws. The Court also directed authorities to use highway and roadside cameras to identify uninsured vehicles and issue electronic challans to their owners.
Expressing concern that nearly 56% of registered vehicles in India are uninsured, a Bench comprising Justices Sanjay Karol and Prashant Kumar Mishra observed that the objective of Section 146 of the Motor Vehicles Act, which mandates third-party insurance, is being defeated. The Court noted that the lack of insurance often forces road accident victims into prolonged legal battles to obtain compensation.
According to government data placed before the Court, 16.5 crore of India’s 30.4 crore registered vehicles do not have valid insurance. Uninsured vehicles are reportedly involved in around 22% of road accidents.
Under the Motor Vehicles Act, driving or permitting an uninsured vehicle to be driven is a punishable offence. A first-time violation carries a penalty of up to three months’ imprisonment, a fine of ₹2,000, or both. For subsequent offences, the fine increases to ₹4,000, along with the possibility of imprisonment for up to three months.
The Court suggested that the Insurance Regulatory and Development Authority of India (IRDAI), in consultation with the Ministry of Road Transport and Highways, develop a pilot project linking vehicle insurance status to fuel purchases. Under the proposal, vehicles without valid insurance could be refused fuel until their insurance is renewed.
According to the Bench, such a system would serve two purposes: it would help identify uninsured or unregistered vehicles and encourage vehicle owners to maintain valid insurance coverage. The Court noted that the Ministry of Petroleum and Natural Gas has, in principle, expressed no objection to exploring the proposal.
The Bench also directed stricter enforcement of existing laws by recommending that state traffic police be equipped with handheld devices or mobile applications connected to the Insurance Information Bureau (IIB) and the VAHAN database, enabling officers to verify insurance status during inspections.
In addition, the Court called for the integration of Automatic Number Plate Recognition (ANPR) cameras with the Insurance Information Bureau and VAHAN databases. These cameras, already used in several states to detect traffic violations such as speeding, red-light jumping, and wrong-side driving, could also automatically identify uninsured vehicles and generate e-challans, the Bench said.
