Driving Without Insurance

Driving without insurance is a dangerous misadventure for anyone. It exposes them to huge financial liabilities. Moreover, driving without insurance is an offence under the Motor Vehicles Act, 1988. A heavy fine is charged for driving without insurance from the offender.

Types of Insurance Policy Available to An Owner of a Vehicle

Auto insurance in India is of two types that are available to a vehicle owner.

• The Third-party Insurance Policy is primary insurance for a vehicle It usually covers injuries to victims of an accident. It also covers damages inflicted to any third person vehicle or property.

• The Compressive Insurance Policy includes a wide range of coverage for a vehicle owner. It covers damages incurred to the insured vehicle due to an accident. It also includes third party policy claims.  This type of insurance is optional to the owner.

Third Party Insurance Policy Cover Is Mandatory

The Motor Vehicles Act, 1988 makes it compulsory for every vehicle owner to cover the vehicle under the third-party insurance policy before hitting the road.

Any injury or death from a road accident the Motor Vehicles Act, 1988 permits payment of compensation to the victim. Similar is the case where a third person property has been damaged.

The third-party insurance in India protects the owner of the vehicle from such eventualities. They cover the policyholder’s financial liabilities in case any road accident occurs. In such a scenario the insurance company reimburses the expenses which accrue to the owner due to such unforeseen eventualities.

Main Features of The Third-Party Insurance Policy

The third-party insurance policy covers two key aspects of a vehicle owner.

• It offers protection to the owner from financial claim liabilities in case of a road accident which results in injury, partial or permanent disability or death to someone.

• The other aspect covered by such insurance policy is the financial claim liability of a damaged property of a third person due to an accident.

The law permits the affected party to submit a claim of compensation to the appropriate authorities. After completion of proper enquiries and verification processes, the authorities determine the amount of compensation to be paid by the vehicle owner to the victim.

The insurance company bears the financial burden on behalf of the owner to the extent that the policyholders have taken the policy coverage for their vehicle. The scheme is to be able to meet the entire liability or minimise the said liability to the greatest extent possible.

Recent Changes in The Motor Vehicles Act

The Motor Vehicles Act, 2019 has seen a steep rise in driving penalty charges across the country. Earlier, driving without insurance fine was stipulated at Rs. 1,000. The vehicle owner could also face imprisonment for up to 3 months.

After the amendment, the driving without insurance fine has been doubled to Rs. 2,000. However, the term of imprisonment still remains up to 3 months if the offence has been committed by the owner for the first time.

If the same offence is committed for the second time or more by the same vehicle owner, then the fine for driving without insurance in India has been doubled in comparison to that of the first offence. Hence, the vehicle owner is liable to pay Rs. 4,000 and / or face imprisonment for up to 3 months.

So, it is quite obvious that driving without insurance should be shunned completely by all vehicle owners in India. And a third-party insurance policy keeps at bay any driving penalty.

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