If this document is not present in the vehicle, petrol will not be available and even jail is possible.

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

Vehicle insurance -At present half the vehicles in the country are running without insurance. The government is going to tighten the rules to promote insurance compliance. Those vehicles which do not have third party insurance will neither be given oil nor …read more

New Delhi. If you have not yet insured your car, then get it done soon. Because in the coming days, vehicles which do not have third-party insurance will not get fuel and Fastag. Also, the driving license of the vehicle owner without insurance will not be renewed. The Union Finance Ministry has asked the Ministry of Road Transport and Highways to consider several measures to promote third-party insurance. These above mentioned suggestions are also included in these. Under the Motor Vehicles Act, 1988, third-party insurance is mandatory for all vehicles. This insurance is meant to compensate for the loss caused to a third party in an accident. Despite it being mandatory, more than half of the vehicles on Indian roads are running without insurance.

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

Also read- Fall in crude oil, prices of petrol and diesel reduced in many parts of the country, know the latest rates.

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

Insurance compliance will increase strictly
Rajat Mahajan, partner and automotive sector leader, Deloitte, said that the use of FASTag and digital platforms will help in increasing insurance compliance. FASTag transactions reached ₹6,642 crore in December 2024. If insurance verification is linked to FASTag and other digital services, it can make the process simple and effective. This step will increase insurance coverage as well as improve data collection and analysis. Government and insurance companies will be able to identify areas with low insurance coverage and formulate appropriate strategies. Mahajan said the increased insurance coverage will broaden the risk, making premiums competitive and providing better benefits to policyholders.

integrated system planning
Aaron Asrar, partner at Solomon & Company, said linking third-party insurance, FASTag and pollution certificates with Aadhaar can increase the effectiveness of the integrated system. This will enable vehicle owners to manage all services on a single platform.