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Risks Involved While Driving A Car Which Has An Expired Policy Or Is Uninsured

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As per the Motor Vehicles Act, 1988, it is mandatory for all motor vehicles plying on public roads in India to have a motor insurance cover. Still, the research suggests that as many as 60% of the vehicles on the roads do not have a valid insurance cover. Driving without an insurance policy can lead to many unfortunate consequences, including the ones listed below.

Penalties and legal fines

As per the latest regulations, heavy fines have been proposed for driver caught without valid insurance under Schedule III of section 305 of the Motor Vehicles Act, 2016. These are:

Two-wheelers: Rs 10,000
Light motor vehicle and three wheelers: Rs 25,000
Other categories of motor vehicles (including cars): Rs 75,000

Other legal complications

Getting caught without a valid motor insurance policy on multiple occasions can lead to your driving licence being suspended. The authorities could also suspend your vehicle registration. The enforcement agencies also have the right to seize your vehicle, and in extreme cases, an offender can be imprisoned by a court for up to 3 months.

Third party liability

If you are involved in an accident, other parties can sue you for damages that they sustain because of you. Typically, your insurer would handle any payments resulting from such incidents. But, if your vehicle is uninsured, you will have to bear the cost by yourself. Additionally, you will also have to arrange for any legal advice you may need. In case of accidental death of the other party, the compensation you have to pay may be much higher.

Damage to self

Your car may also suffer damage in an accident. If you do not have a car insurance policy , you will have to bear all the repair costs yourself. Further the case of total loss or theft of the vehicle – all your investment in the car is gone.

Loss of no claim bonus

If you do not renew your car insurance policy on time and let it expire – you will lose the no claim bonus that you have accumulated. NCB can be as high as 50% of your premium amount.

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