Fine for Driving Without Insurance in India

  • Author :
  • TATA AIG Team
  • Published on :
  • 31/07/2023

We are used to viewing traffic rules as hindrances that inconvenience us – when, in reality, they are designed to ensure our protection and enhance road safety. Whether it is wearing a seatbelt, driving without using a mobile phone, or investing in four-wheeler insurance – all these rules are in place to help drivers have a safe journey wherever they go.

And to impress the importance of abiding by these rules, the authorities have fines and penalties levied on violators. Like other traffic rules, the Ministry of Road Transport and Highways in India has levied a penalty for driving without an insurance policy. Let’s understand the rules regarding 4-wheeler insurance and what the fine is for driving an uninsured vehicle.

Four-Wheeler Insurance Rules to Drive Legally on Indian Roads

The Motor Vehicles Act in India mandates that every car that runs in public space must be covered by 4-wheeler insurance with at least third-party insurance coverage. The important points regarding four-wheeler insurance to drive legally on Indian roads are:**

  • Third-Party 4-Wheeler Insurance: Every four-wheeler owner in India must have a third-party liability insurance policy as per the Motor Vehicles Act, 1988. This policy covers the legal liabilities that may arise due to third-party damages caused by the insured vehicle.

    The coverage limit for this policy is set by the Insurance Regulatory and Development Authority of India (IRDAI).

  • Validity: The insurance policy must be valid and should not be expired. It is advisable to renew the insurance policy before it expires to ensure continuity of coverage. Just as you can buy a car policy online, you can even renew your cover online from the comfort of your home.

  • Fine on Driving Without Insurance: Driving without a valid motor insurance policy is a punishable offence under the Motor Vehicles Act of 1988.

While third-party liability insurance is mandatory, investing in a comprehensive car insurance policy that provides coverage for third-party liabilities and damages to the insured vehicle is always advisable. Additionally, it also covers damages caused by natural disasters, theft, fire, and other human-made calamities. However, it is not mandatory by law.

Now that we know that it is mandatory to have motor insurance to drive legally on Indian roads, let’s see what driving a car without an insurance fine is.

What is the Fine for Driving a Car Without Insurance in India?

Driving a car without a valid insurance policy is a serious offence in India, and the offender is expected to pay a fine if driving without insurance as prescribed by the Motor Vehicles Act, 1988. The fine for driving without insurance is as follows:**

  • First-time Offence: Driving without insurance fine for a first-time offender is ₹2,000 or imprisonment for up to 3 months or both.

  • Subsequent Offence: In case of repeat offences, the penalty for driving without insurance increases up to ₹4,000 or imprisonment for up to 3 months or both.

  • Invalid Insurance Offence: If an individual is driving with motor insurance that has expired for three months, the fine is ₹1,000. However, if it has been longer than three months, the fine can be up to ₹2,000. The fine amount can vary based on the discretion of the traffic police or authorities.

It is important to note that the aforementioned fine for driving a car without insurance is only for violating the law. In addition to the fine for driving an uninsured vehicle, the driver may also be held liable for damages caused due to accidents. In an accident, if the driver is found guilty of driving without insurance, he/she may have to pay for the damages from their pocket, which could significantly dent their finances.

Therefore, it is highly recommended that all car owners have a valid four-wheeler insurance policy as per the Motor Vehicles Act, 1988, and renew the policy promptly before it expires. To instil the importance of car insurance while driving, the authorities recently increased the driving car without insurance fine.

Increase in the Fine for Driving Without Insurance

The fine on driving without insurance has increased in India under the Motor Vehicles (Amendment) Act, 2019. Formerly, the driving without insurance fine was ₹1,000, which has now been doubled to ₹2,000 for the first offence. Similarly, the fine if driving without insurance for the subsequent offence has been increased from ₹2,000 to ₹4,000 for subsequent offences. Let’s understand the reasons behind these increased fines:

  • The fines for driving without insurance have been increased in India as part of a broader effort by the Indian government to reduce road accidents and make Indian roads safer.

  • India has one of the highest rates of road accidents in the world, claiming lakhs of lives every year. A significant portion of these accidents involves uninsured vehicles that can financially burden the victim’s family. The government hopes that increasing the penalties for driving without insurance will create awareness among vehicle owners about the importance of having insurance and encourage more people to comply with the law.

  • Increased fines are also aimed at deterring people from driving uninsured vehicles. This is important as uninsured vehicles can also lead to fraudulent claims and contribute to the overall insurance cost for vehicle owners. By reducing the number of uninsured vehicles on the road, the government hopes to create a more stable and sustainable insurance market for vehicle owners in India.

In summary, the increased fines are expected to deter people from driving uninsured vehicles and reduce the burden on victims of accidents.

The Benefits of 4-Wheeler Insurance

Car insurance does more than just help you drive legally on Indian roads. There are several benefits of motor insurance. Here are some reasons why car insurance is your most reliable companion on the roads:**

  • Protection against financial losses: Car insurance provides financial protection against losses resulting from accidents, theft, natural disasters, and other events that may cause damage to your vehicle. Without insurance, you would have to bear these expenses out of your pocket, which can be quite significant.

  • Coverage for third-party liability: Car insurance policies in India typically include coverage for third-party liability, which means that the insurance company will cover the cost of damages and injuries caused to third parties in an accident involving your vehicle.

  • Personal accident cover: Some car insurance policies in India also provide personal accident cover, which means that the insurance company will pay a fixed amount of compensation in case of accidental death or permanent disability resulting from an accident involving your vehicle.

  • Additional coverage options: Car insurance policies in India often come with a range of additional coverage options, such as coverage for accessories and add-ons, engine protection, and roadside assistance. These options can provide additional protection and convenience to vehicle owners.

Conclusion

Car insurance is essential for vehicle owners to protect themselves and their beloved vehicles. If you are pressed for time, you can easily buy a car policy online. Another benefit of buying a car policy online is that you can easily compare different policies, and you may also get a discount on your premiums.

The comprehensive car insurance by Tata AIG is designed to offer wholesome protection on the road. It comes with unique add-ons to customise your cover based on your specific insurance needs.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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