Now Reading: SC extends mandatory third-party insurance for new cars, bikes
-
01
SC extends mandatory third-party insurance for new cars, bikes
The Supreme Court has extended mandatory third-party insurance for new vehicles: cars now require four years of cover and two-wheelers six years at purchase. The court noted a 'shocking' number of vehicles…
The Story in Brief
The Supreme Court has extended mandatory third-party insurance for new vehicles: cars now require four years of cover and two-wheelers six years at purchase. The court noted a 'shocking' number of vehicles ply without insurance, forcing accident victims to run from pillar to post. It proposed denying fuel to uninsured vehicles and directed state police to file detailed accident reports for claims before March 2022 to clear the backlog. The matter will be heard again on 18 August.
The Indian Opinion
The court's intention to help accident victims is welcome, but the idea that longer tenure alone fixes compliance is not backed by data. Renewal rates for two-wheelers drop to 21% by the sixth year, while honest car buyers already renew at over 75%. This order adds upfront cost without touching the real gap, commercial vehicles and lapsed renewals. The real test is whether the enforcement measures, fuel link and digital challans, actually get rolled out. Will they be implemented before the next hearing in August? That will tell us if this is more than a paperwork fix.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
