Supreme Court Proposes No Fuel for Uninsured Vehicles, Seeks Stronger Insurance Enforcement

August 4, 2026

New Delhi: The Supreme Court has directed the Central Government and the Insurance Regulatory and Development Authority of India (IRDAI) to prepare a pilot project under which vehicles without valid insurance will not be given fuel at petrol pumps. The court stated that this would help reduce the number of uninsured vehicles and ensure timely compensation for road accident victims.

Identification through technology, e-challans will be issued

A bench of Justices Sanjay Karol and Prashant Kumar Mishra directed that Automatic Number Plate Recognition (ANPR) cameras be linked to insurance databases and the VAHAN portal to identify uninsured vehicles and issue automatic e-challans. States have also been directed to provide traffic police with handheld devices or mobile apps that can verify vehicle insurance on the spot.

Directed to extend the period of third-party insurance for new vehicles

The Supreme Court directed the mandatory period of third-party insurance for new private cars from three years to four years, and for new two-wheelers from five years to six years. The court stated that this step is necessary to strengthen road safety and protect the interests of accident victims.

56% of vehicles are uninsured, emphasis on timely compensation for victims

The court noted that approximately 56% of vehicles in the country are operating without insurance, forcing road accident victims and their families to undergo lengthy legal processes to obtain compensation. The court also directed insurance companies to provide information about motor insurance plans in simple language and to expedite the resolution of pending motor accident compensation cases.