The Indian state of Madhya Pradesh has launched a pilot project that will stop uninsured vehicles from refuelling at petrol pumps.
The initiative comes a few weeks after the country’s top court asked the government of India to launch a no insurance, no fuel project, aimed at increasing motor insurance coverage across the country. Currently, nearly 56% of vehicles on Indian roads are uninsured, leaving accident victims vulnerable to lengthy legal battles and financial hardship.
The Supreme Court of India has proposed a pilot project and has requested the Insurance Regulatory and Development Authority of India and the Ministry of Road Transport and Highways, to explore a system where insurance records are linked with the VAHAN portal and verified using automatic number plate recognition cameras and fuel is supplied to a vehicle only if it has valid insurance.
Terming this a significant issue linked to the Right to Life under Article 21 of the Constitution, the Supreme Court stated that the objective of mandatory third-party insurance under Section 146 of the Motor Vehicles Act is not merely to secure compensation for accident victims but also to spare them from protracted legal proceedings.
The Court believes that such a system will encourage vehicle owners to renew insurance on time and facilitate the identification of uninsured vehicles.