If You Don't Have Third Party Insurance For New Cars And Bikes, You Won't Get Fuel: Here’s Why

Published 5 August 2026 · india

News business economy If You Don't Have Third Party Insurance For New Cars And Bikes, You Won't Get Fuel: Here’s Why If You Don't Have

News business economy If You Don't Have Third Party Insurance For New Cars And Bikes, You Won't Get Fuel: Here’s Why If You Don't Have Third Party Insurance For New Cars And Bikes, You Won't Get Fuel: Here’s Why Published By, Last Updated: August 05, 2026, 14:56 IST The top court said that such a mechanism would serve two purposes — help identify uninsured or unregistered vehicles and encourage owners to maintain valid insurance. Rapid Read The court also directed IRDAI and MoRTH to deploy ANPR cameras in selected states and integrate them with the Insurance Information Bureau's database and the VAHAN portal. Imagine pulling into a petrol pump, ready to fill up your car or bike, only to be told you cannot get fuel because your vehicle does not have valid third-party insurance. That could be the case now as in a significant ruling, the Supreme Court has directed the Centre to explore a pilot project under which vehicles without valid third-party insurance could be denied fuel at petrol pumps. A bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra took serious note of the large number of vehicles plying without third-party insurance cover and asked the Insurance Regulatory and Development Authority of India (IRDAI), in consultation with the Ministry of Road Transport and Highways (MoRTH), to work out a mechanism linking fuel purchases with the insurance status of vehicles.

Under the proposed system, vehicles found without valid insurance could be refused fuel until the required policy is obtained. The bench which flagged the lack of compliance of provisions of the Motor Vehicles Act requiring all vehicles to have a valid insurance policy covering third parties, said it is shocking to learn that nearly 56 per cent of vehicles plying on Indian roads remain uninsured according to the Report of the Standing Committee on Finance 2024–25. The top court said that such a mechanism would serve two purposes — help identify uninsured or unregistered vehicles and encourage owners to maintain valid insurance. “Such projects would ensure ground-level compliance with the statutory mandate of Section 146 of the MVA. This may be done through the use of ANPR (Automatic Number Plate Recognition) cameras," it said, adding that the Ministry of Petroleum and Natural Gas has, in principle, no objection to the same. The top court noted that in 2018, the top court mandated purchase of third-party insurance for three years for new cars and five years for two-wheelers, at the time of purchase or registration of new vehicles. “We notice that despite eight years having passed from the said direction, a large number of vehicles remain uninsured. While the IRDA and GIC (General Insurance Council) have recommended that this period not be enhanced, we are of the view that it is in the interest of road safety that the period be enhanced by one year," it observed.