Supreme Court extends third-party insurance cover of new vehicles by a year
The Supreme Court of India has extended the mandatory third-party motor insurance coverage for new vehicles to four years for cars and six years for two-wheelers. The court also ordered the integration of traffic camera data with insurance databases to better enforce compliance and ensure accident victims receive compensation.
Why it matters
This ruling aims to address the high number of uninsured vehicles on Indian roads, which frequently leaves accident victims without legal or financial recourse.
The Supreme Court on Tuesday (August 4, 2026) extended the mandatory third-party motor insurance coverage of new vehicles by a year. New cars will now have four years of coverage and two-wheelers six years, it said. The court observed that despite the statutory mandate, a “shocking” number of vehicles continued to ply on Indian roads without third-party insurance, forcing accident victims and their families to “run from pillar to post” to secure compensation.
The court proposed a system in which vehicles without valid insurance can be denied fuel at petrol pumps.
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