Question : Insurance Cover of Vehicles

(a) whether it is a fact that forty per cent of cars plying on Indian roads have no insurance cover;

(b) if so, the details thereof and the reasons therefor;

(c) whether the Government proposes to impose a hefty fine for non compliance with the mandatory provision of third party insurance; and

(d) if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

(SHRI PON. RADHAKRISHNAN)

(a) & (b) As per Section 146 of the Motor Vehicles Act, 1988, no person shall use, except as a passenger, or cause or allow any other person to use, a motor vehicle in a public place, unless there is in force in relation to the use of the vehicle by that person or that other person, as the case may be, a policy of insurance complying with the requirements of the Act. The Ministry does not centrally maintain data of vehicles driving without valid insurance policy.

(c) & (d) Section 196 of the Motor Vehicles Act, 1988 provides provisions for penalty to drive an uninsured vehicle. Ministry has proposed amendment in the Motor Vehicles Act, 1988 through the Motor Vehicle (Amendment) Bill, 2016 which inter-alia proposes hike in penalties for various offences. The Bill was introduced in the Lok Sabha for consideration and passing on 9th August, 2016.

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