Forty per cent of vehicles on Indian roads lack mandatory insurance coverage. This alarming statistic was revealed by the Central Government in a Supreme Court petition, underscoring the prevalence of uninsured vehicles involved in road accidents.

According to the government's disclosure, based on e-Detailed Accident Report data, only about 60 per cent of vehicles have third-party insurance coverage. As a result, individuals involved in accidents with these uninsured vehicles cannot claim insurance payouts. They must seek compensation from vehicle owners through legal means, which can be arduous, time-consuming, and often without results.

Taj City's senior Supreme Court advocate KC Jain, who has petitioned the apex court on this issue, has called for implementing e-challans for vehicles without insurance. He emphasized that 40 per cent of vehicles are currently uninsured. In his writ petition of 2023, Jain has advocated for electronic monitoring of vehicles to ensure compliance with traffic rules as per Section 136A of the Motor Vehicles Act. He proposed that electronic cameras should automatically check whether a vehicle has third-party insurance, and if not, issue a challan.

“The data available with the Transport Ministry includes information on uninsured vehicles and the validity of their insurance. Through electronic monitoring, uninsured vehicles can be easily identified and penalized,” Jain stated. According to Section 146 of the Motor Vehicles Act, every vehicle must have third-party insurance, and failing to do so constitutes a punishable offence under Section 196. First-time offenders can face imprisonment of up to three months, a fine of Rs.2000, or both. Repeat offenders face harsher penalties, including imprisonment of up to three months and fines of up to Rs.5000. Despite these provisions, many vehicle owners continue to drive without third-party insurance.

In the financial year 2023-24, general insurance companies received approximately Rs.50,000 crore in third-party premiums from vehicle owners. However, 40 per cent of vehicles remain uninsured. The issue of uninsured vehicles was also raised in the Lok Sabha. In response to Unstarred Question No. 3211 on March 20, 2023, the Finance Minister reported that, excluding Madhya Pradesh, Andhra Pradesh, and Lakshadweep, there are approximately 30.48 crore vehicles in India, of which 16.54 crore are uninsured, according to senior advocate Jain.

The Supreme Court Road Safety Committee has also expressed concern over this issue. In its meeting on March 26, 2018, the committee noted that 66 per cent of vehicles lack third-party insurance, preventing accident victims' families from receiving compensation. Advocate Jain argued that if the Supreme Court mandates electronic monitoring and challaning of uninsured vehicles, it would provide significant relief to the families of deceased and injured accident victims. The next hearing in the apex court is scheduled for July 11.