According to the General Insurance Council, around 50% of vehicles running on the Indian roads are uninsured, and the maximum of these vehicles are two-wheelers. Also, as per the Ministry of Road Transport and Highways, in the year 2017, there were around 4,65,000 road accidents and out of which, more than 1.5 lakh people lost their lives. The increasing number of uninsured vehicles on the road has been a significant cause of such a high number of road accidents.
Many vehicles owners do not consider it important to buy or renew insurance. This has an adverse effect and has been the cause of rising road accidents. On this crucial concern, the Insurance Regulatory and Development Authority (IRDAI) has tied up with the state government and initiated a pilot project across four states of the country to keep track of the uninsured vehicles. On implementation of this project, it would now be unmanageable to drive an uninsured vehicle without paying the challan.
As per this project, IRDAI will fetch the data of the uninsured vehicles and pass on this information to the Transport Department. This way, the RTO will get the details of the uninsured vehicles. These details will be further forwarded to the traffic police to keep an eye on such vehicles and charge penalties accordingly.
At the CII Insurance and Pensions Summit, the IRDAI Chairman Subhash Chandra Khuntia stated that “We are working with four state governments on a pilot project on how to contact the owners of the motor vehicles which are not insured and send communication to them so that they can come and renew their insurances.”
Also, as per the new Motor Vehicles Act, vehicles that do not possess a valid third party insurance policy will be fined and in some cases, could lead to imprisonment.
Even the fines have now increased to double the initial set fine, from Rs.1000 to Rs.2000. According to the Insurance Companies, such steps are beneficial as it not only increase the cover of motor insurance but also reduces the risk of accidents.
This initiative will be a push for the uninsured vehicle owners to insure their vehicles at the earliest, and we will likely see a lesser number of accidents.