India’s Supreme Court has ordered longer mandatory third-party insurance periods for new cars and two-wheelers, aiming to improve crash victim protection and close a persistent compliance gap, with enforcement measures including linking fuel sales to insurance validity.
India’s Supreme Court has ordered a longer mandatory third-party insurance period for new vehicles, in a move that will lift upfront costs for buyers while tightening protection for crash victims. According to reports in Livemint, the new requirement extends third-party cover to four years for new cars and six years for two-wheelers, replacing the shorter periods previously applied at the point of sale.
The court’s reasoning is rooted in a persistent compliance gap. Reports citing government figures say more than half of the country’s vehicle fleet is uninsured, leaving injured people and families of the dead to pursue compensation through lengthy legal claims. The bench said the protection of human life and the right to compensation must take priority over administrative convenience and cost concerns.
The change applies only to newly sold vehicles, not to cars and bikes already on the road. The New Indian Express and other outlets reported that the court also pressed the Insurance Regulatory and Development Authority of India to issue the necessary implementation directions, which means the rule will be enforced for new registrations once the regulator completes the formal process.
The court is also backing tougher compliance measures. NDTV reported that it has asked for a pilot project linking fuel sales to valid insurance status, so uninsured vehicles could be refused petrol or diesel until coverage is renewed. Separate reports say the wider enforcement plan may include automatic number-plate recognition cameras tied to insurance databases, as well as hand-held devices for traffic officers to check cover on the spot. Moneycontrol also reported that the court wants insurers to offer a clearer set of cover options at the time of purchase, including third-party protection and optional add-ons.
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