There are 30.5 crore vehicles running on the roads of the country. Out of these, 16.5 crore vehicles are not insured. The problems of such people are going to increase. Third-party motor insurance is mandatory in the country. In such a situation, the traffic department will now keep an eye on vehicles without insurance.
If you are driving your vehicle without insurance, then be alert. The traffic department will now keep an eye on the vehicle without insurance. You may get a penalty notice from the traffic department. Sources have revealed that its preparation is in its final stage. Under this, the lead insurer of every state will share the data of uninsured vehicles with the traffic department of the state.
The government has already said that despite third party insurance of vehicles being mandatory, more than 50% of the vehicles on Indian roads are still not insured. Third-party motor insurance is mandatory in India. Since many vehicles are without insurance, accident victims do not get adequate compensation. In such a situation, the government is also very active about this.
According to sources, insurance regulator IRDAI has appointed lead insurance companies for each state. The lead insurer of each state will have access to NIC data of vehicles sold and insured in that particular state. Insurance expert Vishesh Gandhi said that Minister of State for Finance Bhagwat Karad himself has said in response to a question in Parliament that there are 30.5 crore vehicles on the roads. 16.5 crore vehicles are not insured. If this happens, a big change will be seen. If this happens, non-life insurance companies will benefit a lot. Because motor insurance is the biggest market segment for companies providing non-life insurance.
What is the law
According to the Motor Vehicles Act, 2019, driving without an insurance policy is illegal. In such a case, the fine for the first time is Rs 2,000/- and/or imprisonment up to 3 months. The fine for driving without an insurance policy for the second time and thereafter is Rs 4,000. The fine is the same for all vehicles. Amjad Khan, head of Anand Rathi Insurance Broker, said that people have to be brought into discipline only by giving rewards or imposing fines.
Despite third party insurance being mandatory, if vehicles without insurance ply on the roads, then it is a matter of concern. In such a situation, if fines are imposed, then there will be a change in thinking. If this happens, then it is possible that motor insurance premiums may increase slightly. Currently, the motor insurance segment is very large for non-life insurance. 35-40% of their total premium comes from the motor insurance segment.
