These riders will not get petrol-diesel, FASTag, a new rule set to be in effect

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By

Sweta Mitra

In the near future, vehicles lacking third-party insurance will be prohibited from refueling with petrol, diesel, or CNG, as well as from purchasing Fastag. Additionally, the driving licenses of vehicle owners without insurance will not be eligible for renewal. The Finance Ministry is set to implement several stringent measures to encourage the uptake of third-party insurance.

 

The Finance Ministry has advised the Ministry of Road Transport and Highways to explore various initiatives concerning motor vehicle insurance, emphasizing that no vehicle should operate on public roads without third-party coverage. Among the proposals from the Finance Ministry is the stipulation that fuel and Fastag will only be available to vehicles with valid third-party insurance.

 

Changes to regulations are imminent

An official involved in the discussions indicated that the ministry is actively developing these proposals, and regulatory changes may occur shortly. This initiative aims to connect vehicle-related services to insurance coverage, ensuring that petrol stations and other service providers cater exclusively to vehicles with valid insurance. Furthermore, state governments and union territories will be directed to enforce strict adherence to these new regulations.

 

Why is third-party insurance important?

Under the Motor Vehicles Act of 1988, having third-party insurance is a must for all vehicles that are at least three months old. This type of insurance is designed to cover damages caused to others in the event of an accident. Even though it’s required by law, over half of the vehicles on Indian roads are still uninsured.

 

Data from the Ministry of Road Transport and Highways shows that in 2022-23, there were around 34 crore registered vehicles in India, but only about 43-50% of them had valid third-party insurance. In 2024, a parliamentary committee looked into this issue and suggested that stricter measures be put in place. As of March 2020, around 6 crore vehicles were found to be uninsured.



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