No third-party insurance? You may not get to buy fuel, FASTag

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Subscribe to enjoy similar stories. Want to buy fuel, get a FASTag, or renew your driving licence? Soon, you may have to show that your vehicle has valid third-party insurance.

The Union finance ministry has asked the road ministry to consider various measures to expand third-party insurance, which remains patchy despite stringent punishments listed under the Motor Vehicles Act, two people aware of the matter said. These include sending text messages to uninsured vehicle owners, as well as insisting on third-party Insurance to buy fuel and obtain FASTags, as well as renew driving licence and pollution control certificate.

Under Motor Vehicles Act, 1988, all motor vehicles must compulsorily have an insurance policy covering third-party risks, and offenders can be jailed for as long as three months. The move comes at a time when more than one in two vehicles on Indian roads does not have third-party insurance, which is designed to cover the costs of losses to a stranger in an accident.

“These proposals are being worked out, and soon, the road ministry may make changes in rules governing Motor Vehicles (MV) Act to link various vehicle-related compliances with third-party insurance cover and issue necessary notifications. Also, road ministry would also issue necessary directions to all state governments and union territories for strict enforcement of the provisions of the MV Act that mandates compulsory third-party insurance cover," one of the two people cited above said on the condition of anonymity.

Queries emailed to the ministries of finance and highways remained unanswered till press time. According to data from the Insurance Regulatory and Development Authority of India (Irdai), third-party insurance coverage in India