Pilot project to track vehicles without insurance in 4 states

Those operating vehicles without insurance will no longer be able to hide from the law in the near future.

The Insurance Regulatory and Development Authority of India (IRDAI) is all set to kickstart a pilot project to prepare a database of insured and uninsured vehicles. This data will help the traffic police issue challans to violators, said sources.

IRDAI Chairman Subhash Chandra Khuntia said, "We are working with four state governments on a pilot project on how to contact the owners of the motor vehicles that are not insured and send communication to them so that they can come and renew their insurances."

Under Motor Vehicle Act, third-party insurance is a must for every vehicle on the road. Those flouting the law are liable to pay a fine of Rs 2,000. According to the General Insurance Council, nearly 50% of the vehicles, most of them two-wheelers, on Indian roads are not insured.

Third-Party insurance can protect a vehicle owner against legal liabilities in case of an accident. This policy mostly covers third-party injuries or death. Damage to the other side is also covered.

"This is a good move. It will surely bring a lot of uninsured vehicles under check and increase the rate of vehicle insurance penetration," said Rupam Asthana, CEO of Liberty General Insurance.

—Zee Media Newsroom