No insurance, no fuel? Supreme Court seeks Centre's plan to stop fuel sales to uninsured vehicles

Summary

The Supreme Court on Tuesday proposed a pilot project under which fuel would be supplied only to vehicles with valid insurance to curb the growing number of uninsured vehicles and ensure timely compensation for road accident victims, according to a report by Bar and Bench. “In the absence thereof, the vehicle concerned would be refused fuel at petrol pumps until such time that valid insurance is obtained,” the Bench ordered, noting that the Ministry of Petroleum and Natural Gas had, in principle, raised no objection to the proposal. A Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra issued several directions, including linking Automatic Number Plate Recognition (ANPR) cameras with insurance databases to automatically issue e-challans to uninsured vehicles. It also called for handheld devices to be provided to traffic police to check insurance status on the spot, longer mandatory third-party insurance for new vehicles, and faster disposal of pending motor accident compensation cases. Hearing the case National Insurance Co. v. Thungala Dhana Laxmi & Ors., a Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra noted that nearly 56% of vehicles on Indian roads do not have valid insurance. The direction builds on the Supreme Court's 2018 ruling in S Rajaseekaran vs Union of India, which had made long-term third-party insurance compulsory at the time of registration of new vehicles. It includes a mandatory third-party insurance policy, an optional legal liability cover for occupants and pillion riders, an optional personal accident cover for the owner, driver and occupants, and an optional own-damage cover. The Bench further directed IRDAI, along with the General Insurance Council and insurers, to prepare standard policy wordings for optional insurance covers while allowing companies flexibility in pricing and product design. Her coverage frequently explores the struggles of startup founders, inspiring journeys of CEOs, and the experiences of candidates dealing with the complexities of visa processes. <br><br> Kanishka holds an undergraduate degree in Journalism from Delhi University and a diploma from the Indian Institute of Mass Communication. Stay updated with the latest Trending , India , World and US news.