Motor Vehicle Act: The Finance Ministry has asked the Road Transport Ministry to discuss measures related to motor vehicle insurance. Under this, it will be focused that no vehicle under the Motor Vehicle Act should run on the road without third-party insurance.
What is Third Party Insurance: If you want to buy petrol-diesel for your car, FASTag or renew your DL, then you must have a valid third-party insurance. Yes, such a rule is going to be implemented soon. This simply means that if you do not have third-party insurance, your DL will not be renewed. Not only this, you will not be allowed to issue FASTag or buy petrol-CNG. The Finance Ministry has asked the Road Transport Ministry to take strict steps to make third party insurance available to as many people as possible.
Renewal of DL and pollution certificate also included
The Finance Ministry has asked the Road Transport Ministry to discuss various measures related to motor vehicle insurance. Under this, it will be focused that no vehicle should run on the road without third-party insurance under the Motor Vehicles Act. This includes sending text messages to vehicle owners without insurance, buying petrol-diesel and issuing FASTag. It also includes renewal of DL and pollution certificate.
Rules can be changed
Under the Motor Vehicles Act, 1988, all motor vehicles must have third party insurance. If this is not done, there can be a jail term of three months. This step is being taken at a time when one out of two vehicles running on Indian roads does not have third party insurance. This insurance is designed to compensate for the loss caused to a stranger in a road accident. Such a proposal is being worked on and soon the Ministry of Road Transport can change the rules governing the Motor Vehicles Act.
You should have valid third-party insurance of the vehicle
Different vehicle-related compliances can be linked with third party insurance cover and necessary notifications can be issued. Apart from this, the Ministry of Road Transport will also issue necessary instructions to all state governments and union territories for strict enforcement of the provisions of the Motor Vehicles Act, which makes third party insurance cover mandatory. The government is planning that all the important work related to any car or bike like buying petrol, taking fastag, renewing license can be done only when the third-party insurance of your vehicle is valid. For this, the Ministry of Road Transport can soon change the rules.
Apart from this, all the states will be instructed to take strict action against vehicles without third-party insurance. According to IRDAI data, out of about 35 to 40 crore vehicles running on the roads in the country, only about 50% of the vehicles have third party insurance. Recently, the Parliamentary Standing Committee on Finance has suggested considering ways to increase third party insurance coverage.
In its seventh report presented in Parliament last month, the committee noted that as of March 31, 2020, up to 56% of vehicles were without insurance. The government has been asked to take advantage of data collection to examine the implementation of electronic challan in the states. The report said that states should report data on vehicle registration and insurance coverage.
