SC Proposes Fuel Ban for Uninsured Vehicles, Calls for Automatic Highway Monitoring and Longer Mandatory Insurance Cover
In a major move aimed at improving road safety and ensuring better compliance with motor vehicle laws, the Supreme Court has directed the Central government to prepare a pilot project under which petrol pumps would not supply fuel to vehicles lacking valid third-party insurance. The proposal forms part of a broader set of measures suggested by the apex court to reduce uninsured vehicles and streamline traffic management across the country.
Top Court Pushes for ‘No Insurance, No Fuel’ Pilot
A Bench comprising Justices Sanjay Karol and Prashant Kumar Mishra asked the Centre, the Insurance Regulatory and Development Authority of India (IRDAI), and the Ministry of Road Transport and Highways (MoRTH) to work together on a pilot initiative linking fuel purchases with insurance verification.
If implemented, the system would prevent vehicles without active third-party insurance from refuelling until their policies are renewed. The court observed that such a mechanism could significantly improve compliance while helping identify uninsured and unregistered vehicles.
Concern Over Rising Number of Uninsured Vehicles
The Supreme Court expressed serious concern over the large number of uninsured vehicles operating on Indian roads. Referring to official data, the Bench noted that over 16 crore registered vehicles currently do not have valid insurance coverage, leaving accident victims vulnerable to prolonged legal battles for compensation.
The court reiterated that mandatory third-party insurance exists primarily to ensure that victims of road accidents receive timely financial relief without unnecessary litigation.
ANPR Technology to Modernise Highway Monitoring
The apex court also recommended replacing conventional toll plazas with Automatic Number Plate Recognition (ANPR) technology on selected national highway corridors.
Under the proposed system, cameras would automatically identify vehicles without requiring them to stop at toll booths, reducing congestion and improving traffic flow. The same technology could also be integrated with insurance databases to detect uninsured vehicles and automatically issue e-challans.
Mandatory Insurance Period May Be Extended
In another significant direction, the court asked IRDAI to immediately issue necessary directions to extend the mandatory third-party insurance period for newly purchased vehicles.
Under the proposal:
- New cars would require four years of compulsory third-party insurance.
- New two-wheelers would require six years of compulsory third-party insurance.
The Bench observed that despite earlier directions issued in 2018, compliance with insurance norms remains unsatisfactory.
Police Verification System to Become Digital
The Supreme Court also directed authorities to strengthen enforcement by equipping police personnel with handheld devices or mobile applications connected to the Insurance Information Bureau and the VAHAN database. This would allow officers to instantly verify a vehicle’s insurance status during routine checks.
Additionally, IRDAI has been asked to introduce multiple insurance options, including add-on covers, personal accident protection and own-damage policies alongside the mandatory third-party cover.
The directions were issued while hearing a motor accident compensation matter, with the court stressing that stronger enforcement of insurance laws is essential to safeguard the rights of road accident victims and improve road safety across the country.
