No Insurance, No Fuel?

Supreme Court has proposed a new idea to improve road safety in India. It has asked the Central Government to prepare a pilot project under which vehicles without valid third party insurance may not be allowed to buy fuel from petrol pumps.

The court expressed concern over the large number of uninsured vehicles on Indian roads. According to the court, more than 16 crore vehicles are running without mandatory third party insurance. This creates problems for accident victims, who may not receive compensation if the vehicle involved is uninsured.

The Supreme Court has asked the Central Government and the Insurance Regulatory and Development Authority of India (IRDAI) to work together and prepare a pilot plan. The project is expected to use technology to check whether a vehicle has valid insurance before fuel is supplied.

At present, this is only a proposal. The court has not ordered immediate implementation across the country. The government will first study the idea and prepare a pilot project before taking any further decision.

Third party insurance is already compulsory under Indian law for every vehicle. However, many vehicle owners continue to drive without renewing their policies. If the proposed system is introduced in the future, vehicle owners may have to keep their insurance active to refill fuel.

The move is aimed at increasing insurance compliance, protecting accident victims and making Indian roads safer. The final decision will depend on the government’s pilot project and future policy decisions.