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barandbench.com·3 min read·hard

No insurance, no fuel: Supreme Court proposes linking fuel supply with vehicle insurance

R
Ritwik Choudhury
No insurance, no fuel: Supreme Court proposes linking fuel supply with vehicle insurance
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The Indian Supreme Court has proposed a pilot project to link fuel supply with valid vehicle insurance to address the high number of uninsured vehicles on the road. The court also directed regulators to increase the mandatory third-party insurance duration for new vehicles.

Why it matters

This legal intervention seeks to improve road safety and ensure that accident victims receive timely compensation by enforcing insurance compliance.

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The Supreme Court on Tuesday proposed linking fuel supply with valid vehicle insurance as part of a pilot project to curb large number of uninsured vehicles on Indian roads [National Insurance Co. v. Smt. Thungala Dhana Laxmi & Ors.]. .A Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra also directed the Insurance Regulatory and Development Authority of India (IRDAI) to increase mandatory third-party insurance period for new private cars from three years to four years and for new two-wheelers from five years to six years.The Bench issued a slew of directions after finding that nearly 56 per cent of vehicles on Indian roads do not have valid insurance.

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