‘No third-party insurance, no fuel’: SC asks Centre for vehicle pilot project, Pg12

Key Highlights:

• The Supreme Court expressed shock that nearly 56% of vehicles in India lack valid insurance.
• It directed the government to plan a pilot project linking fuel purchase at petrol pumps with a vehicle's insurance status.
• The directive involves the Ministry of Road Transport and Highways (MoRTH) and Insurance Regulatory and Development Authority of India (IRDA).
• The court also mandated an increase in third-party insurance duration for new cars to four years and new two-wheelers to six years.
• This initiative aims to enforce Section 146 of the Motor Vehicles Act, 1988, which requires mandatory third-party insurance.

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Detailed Insights:

• The Supreme Court bench, comprising Justices Sanjay Karol and P K Mishra, highlighted the non-compliance with mandatory insurance.
• The proposed pilot project aims to identify uninsured or unregistered vehicles and prompt owners to obtain valid insurance.
• The court suggested using Automatic Number Plate Recognition (ANPR) cameras for implementing the project.
• The Ministry of Petroleum and Natural Gas has, in principle, no objection to linking fuel with insurance status.
• The court noted that its July 2018 directions for longer-term third-party insurance for new vehicles had not fully resolved the issue.
• The enhancement of insurance duration is primarily aimed at improving road safety and ensuring broader coverage.
• The bench also considered a uniform motor vehicle policy structure to cover all occupants of a vehicle.

Key Concepts Involved:

• Third-party insurance: A mandatory insurance policy covering damages or injuries caused to a third party by the insured vehicle.
• Motor Vehicles Act, 1988: The primary legislation governing all aspects of road transport vehicles in India.
• IRDA (Insurance Regulatory and Development Authority of India): The statutory body regulating and promoting the insurance and re-insurance industries in India.
• MoRTH (Ministry of Road Transport and Highways): A ministry of the Government of India responsible for the development and maintenance of national highways and road transport.