Supreme Court Proposes Linking Fuel Supply with Vehicle Insurance

The Supreme Court on Tuesday proposed linking fuel supply with valid vehicle insurance as part of a pilot project to curb large number of uninsured vehicles on Indian roads [National Insurance Co. v. Smt. Thungala Dhana Laxmi & Ors.]. A Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra also directed the Insurance Regulatory and Development Authority of India (IRDAI) to increase mandatory third-party insurance period for new private cars from three years to four years and for new two-wheelers from five years to six years.The Bench issued a slew of directions after finding that nearly 56 per cent of vehicles on Indian roads do not have valid insurance. The Court said this defeats the very purpose of compulsory motor insurance and leaves accident victims and their families waiting years for compensation.“It is shocking to learn that nearly 56% of vehicles plying on Indian roads remain uninsured… The consequent effect is that the statutory safeguard of victim compensation is often delayed, if not defeated,” it said. Justice Sanjay Karol and Justice PK MishraThe Court was hearing an appeal filed by National Insurance Company against a Telangana High Court judgment directing it to compensate the family of a man who died in a road accident while travelling in his own insured vehicle. While dismissing the appeal, the Court expanded the proceedings to address larger issues relating to uninsured vehicles, road safety and motor insurance across the country.Fuel s