New Delhi: About 40% of the vehicles on the roads are not insured. As a result, a majority of victims of road accidents or their kin are unable to get adequate compensation in case of fatalities.
This was recently brought to notice of the Supreme Court (SC) by the Central Government during the hearing of a writ petition filed by an Agra-based advocated Kishan Chand Jain. The petition was filed last year.
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As per the affidavit based on e-Detailed Accident Report (e-DAR) data, only about 60% of vehicles, involved in road accidents, had third-party insurance. In cases of accidents by rest 40% vehicles, which are not insured, the victim cannot claim compensation from an insurance company and required pursue a prolonged legal battle against the vehicle owner to get compensation for the damages.
Agra-based lawyer Jain had filed a petition in the Supreme Court for electronic monitoring of vehicles so as to enforce strict compliance with traffic rules as per section 136-A of the Motor Vehicles Act. Jain also sought the court’s intervention for using cameras installed on roads to check whether if all vehicles, passing through the stretches, has third-party insurance. Those not having the insurance shall be penalised.
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“The ministry of road transport and highways (MoRTH) has data indicating which vehicles are insured and the validity of insurance. E-monitoring can easily facilitate the fines of uninsured vehicles,” Jain said.
The advocated further said that as per section 146 of MVA, every vehicle is mandated to have third-party insurance. Failure to do so is punishable under section 196, resulting in imprisonment of up to three months or a fine of ₹2,000 for first offence, and for subsequent offences, imprisonment of three months or a fine of ₹5,000.
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Jain wondered that how vehicle owners are allowed to operate vehicles without third-party insurance in violation of the stipulated rules. In financial year 2018-19, general insurance companies collected ₹38,046 crore in motor third-party insurance premiums, which increased to ₹49,508 crore in 2022-23 and is estimated to reach around ₹50,000 crore in 2023-24. Yet, 40% of vehicles are still running on the roads without insurance, the central government informed the SC.
The concerns regarding operation of uninsured vehicles on road was discussed in the Parliament as well. In reply to an unstarred question in Lok Sabha, Union finance minister Nirmala Seetharaman had on March 20, 2023 had informed about 16.50 crore vehicles out of 30.40 crore on roads across the country, barring Madhya Pradesh, Andhra Pradesh and Lakshadweep, did not have proper insurance.
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The SC Road Safety Committee expressed concern over this matter, stating in its meeting on March 26, 2018, that 66% of vehicles are operating without third-party insurance, leading to a situation where heirs of dead accident victims are unable to receive compensation. The case is set for hearing on July 11.
