New Delhi: The Supreme Court has suggested that the Union government consider a mechanism under which fuel is supplied only to vehicles that have valid insurance coverage.
Hearing an appeal filed by National Insurance Company Ltd, a bench comprising Justices Sanjay Karol and Prashant Kumar Mishra noted with concern that 56% of vehicles plying on Indian roads are reportedly uninsured. The court said this leaves many road accident victims unable to secure compensation on time and forces them into prolonged legal proceedings.
To address the issue, the court recommended a pilot programme that links fuel distribution with vehicle insurance. It said the Insurance Regulatory and Development Authority of India (IRDAI), in coordination with the Ministry of Road Transport and Highways, should design the initiative.
Under the proposed approach, petrol pumps would deny fuel to vehicles without a valid insurance policy until the insurance is renewed. The court observed that such a system would strengthen enforcement of Section 146 of the Motor Vehicles Act, which mandates third-party insurance for all vehicles.
The bench also suggested implementing the plan using automatic number plate recognition cameras, and integrating camera networks on highways and roads with insurers’ databases and the Centre’s VAHAN portal.
