Supreme Court Mandates Extension Of Third-Party Insurance For New Cars And Two-Wheelers

The Supreme Court of India has ordered the extension of mandatory third-party insurance for new cars and two-wheelers. The decision comes after the court observed that numerous vehicles on Indian roads continue to operate without valid insurance. Under the new directive, third-party insurance for newly registered cars will now be valid for four years, while new two-wheelers will require six years of coverage.

"While the Insurance Regulatory and Development Authority of India (IRDAI) and the General Insurance Council (GIC) 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. Therefore, it is directed that henceforth, third-party insurance for four years for new cars and six years for new two-wheelers be required to be purchased. IRDAI shall immediately issue the necessary directions," a Bench comprising Justices Sanjay Karol and Prashant Kumar Mishra said.

No Insurance, No Fuel

In addition to extending the insurance period, the Supreme Court has directed the installation of ANPR (Automatic Number Plate Recognition) cameras outside fuel stations to monitor vehicle number plates.

The system will identify vehicles without valid insurance, and, through integration with the VAHAN portal, e-challans will be issued automatically. Alongside this, the court has directed that vehicles without valid insurance should not be supplied with fuel.

"This is to monitor the real-time insurance status of vehicles and impose challans for violations, ensuring compliance with mandatory insurance on the ground," the court said.

With these measures, the Supreme Court aims to strengthen road safety standards in India. Vehicle insurance plays a major role in improving road safety, as it protects not only vehicle owners but also other road users.