No insurance, no fuel? Supreme Court seeks Centre's plan to stop fuel sales to uninsured vehicles
The Supreme Court on Tuesday proposed a pilot project under which fuel would be supplied only to vehicles with valid insurance to curb the growing
The Supreme Court on Tuesday proposed a pilot project under which fuel would be supplied only to vehicles with valid insurance to curb the growing number of uninsured vehicles and ensure timely compensation for road accident victims, according to a report by Bar and Bench. “In the absence thereof, the vehicle concerned would be refused fuel at petrol pumps until such time that valid insurance is obtained,” the Bench ordered, noting that the Ministry of Petroleum and Natural Gas had, in principle, raised no objection to the proposal. A Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra issued several directions, including linking Automatic Number Plate Recognition (ANPR) cameras with insurance databases to automatically issue e-challans to uninsured vehicles. It also called for handheld devices to be provided to traffic police to check insurance status on the spot, longer mandatory third-party insurance for new vehicles, and faster disposal of pending motor accident compensation cases. 56% of vehicles on Indian roads are uninsured Hearing the case Insurance Co. v. Smt. Thungala Dhana Laxmi & Ors., a Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra noted that nearly 56% of vehicles on Indian roads do not have valid insurance.
The court said this weakens the purpose of compulsory motor insurance and often leaves accident victims waiting years for compensation. Observing that a large number of vehicles remain uninsured, the Bench said the statutory safeguard for compensating road accident victims was often “delayed, if not defeated”, forcing victims and their families into lengthy legal battles. “The object behind mandatory insurance under Section 146 of the Motor Vehicles Act is not just that victims of road accidents are compensated, it is also that they are not drawn into prolonged litigation,” the court was quoted as saying by Bar and Bench. The court said such a system would help identify uninsured and unregistered vehicles while encouraging owners to keep their insurance active. It suggested using Automatic Number Plate Recognition (ANPR) cameras for the project. Court orders e-challans for uninsured vehicles The Bench also directed that ANPR cameras already installed on highways and city roads be linked with the Insurance Information Bureau database and the VAHAN portal. This would allow authorities to automatically issue e-challans to uninsured vehicles.
It further asked States to provide traffic police with handheld devices or mobile apps connected to these databases so they can instantly check a vehicle's insurance status and issue challans on the spot. The court also directed strict implementation of the proposed amendment to Section 196 of the Motor Vehicles Act, which provides for higher penalties for driving uninsured vehicles once the Centre notifies the changes. In a major relief for road safety, the Bench directed IRDAI to increase the mandatory third-party insurance period for new private cars from three years to four years and for new two-wheelers from five years to six years. The court said it was extending the insurance period by one year despite IRDAI and the General Insurance Council advising against the move, saying it was necessary in the interest of road safety. Also Read | E20 petrol can reduce fuel economy by 2-6%: Nitin Gadkari The direction builds on the Supreme Court's 2018 ruling in S Rajaseekaran vs Union of India, which had made long-term third-party insurance compulsory at the time of registration of new vehicles.
The BriefWire