The Supreme Court of India has directed the central government to develop a pilot project that would link fuel supply at petrol pumps to a vehicle's insurance status. This initiative aims to address the significant number of uninsured vehicles on the road, which the court noted accounts for approximately 56% of all vehicles in the country. By requiring valid third-party insurance before dispensing fuel, the court hopes to ensure better compliance with the Motor Vehicles Act and provide better financial protection for road accident victims.
A bench comprising Justices Sanjay Karol and Prashant Kumar Mishra emphasized that the current lack of insurance coverage often leaves accident victims and their families in prolonged legal battles. To tackle this, the court has suggested integrating technology such as Automatic Number Plate Recognition (ANPR) cameras with insurance databases. This system would allow for the real-time identification of uninsured vehicles, potentially leading to automatic e-challans or other enforcement measures.
In addition to the fuel-linkage proposal, the court has ordered an increase in the mandatory third-party insurance tenure for new vehicles. Moving forward, new cars will require four years of coverage, while new two-wheelers will need six years. The Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Road Transport and Highways have been tasked with consulting on the implementation of these measures.
The Ministry of Petroleum and Natural Gas has indicated that it has no objection in principle to the proposal. As the government moves to design the pilot project, the focus will be on creating a seamless verification process that does not cause undue disruption at fuel stations while effectively encouraging vehicle owners to maintain their insurance policies.