New Delhi: In a significant move aimed at improving road safety and ensuring compliance with motor vehicle laws, the Supreme Court on Tuesday directed the Central Government to prepare a pilot project under which vehicles without valid third party insurance could be denied fuel at petrol pumps.
The court expressed concern over the large number of uninsured vehicles on Indian roads, noting that nearly 16.54 crore vehicles are currently operating without mandatory third-party insurance. The judges observed that this poses a serious challenge for accident victims seeking compensation and undermines the purpose of compulsory motor insurance.
The Supreme Court asked the Centre to work with the concerned authorities to design a technology driven pilot project that can verify a vehicle’s insurance status before fuel is dispensed. The court indicated that such a system could improve compliance while strengthening road safety enforcement.
The proposal is currently at the pilot stage and has not been implemented nationwide. The Centre has been asked to examine its feasibility and submit an appropriate plan before any wider rollout is considered.
Third-party insurance is mandatory under the Motor Vehicles Act for all vehicles operating on public roads. Driving an uninsured vehicle can lead to fines and legal penalties, and in the event of an accident, victims may face difficulties in obtaining compensation.
