‘No insurance, no fuel’: SC directs govt to prepare pilot project
The Indian Supreme Court has directed the government to develop a pilot project that would deny fuel to vehicles lacking valid third-party insurance. The initiative aims to increase compliance with mandatory insurance laws, as over half of vehicles in India are currently uninsured.
Why it matters
This represents a significant regulatory push to improve road safety and financial accountability for vehicle owners in India.
NEW DELHI: The Supreme Court on Tuesday directed the Centre to evolve a pilot project under which vehicles without valid third-party insurance could be denied fuel at petrol pumps until they obtain the mandatory insurance cover.A bench of Justices Sanjay Karol and Prashant Kumar Mishra took note of the large number of uninsured vehicles on Indian roads and said nearly 56% of vehicles remain uninsured, citing the Report of the Standing Committee on Finance 2024-25.The court directed the Insurance Regulatory and Development Authority of India (IRDAI), in consultation with the Ministry of Road Transport and Highways (MoRTH), to deliberate and evolve a pilot project linking fuel supply to a vehicle's valid insurance status.“As deliberated upon in court, the IRDA (Insurance Regulatory and Development Authority) in consultation with the MoRTH (Ministry of Road Transport and Highways) to deliberate and evolve a pilot project whereby fuel for vehicles to be linked with…
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