WHAT IS THE PENALTY OF DRIVING WITHOUT CAR INSURANCE IN INDIA

There may be an instance where a rider ends up breaking traffic rules and regulations such as driving a vehicle without an insurance policy.

With due consideration, the Ministry of Road Transport and Highways introduced the Motor Vehicle Act in the year 1988 which further got amended in 2019 in order to improve safety on Indian roads. The amendments are done on the following grounds as mentioned below:

• Individuals caught breaking traffic rules.
• Driving without helmets or seatbelts.
• Driving without the license of both the insured and the vehicle.
• Driving without an insurance copy.
• Letting a juvenile ride a vehicle.
• Not giving way to emergency assist vehicles like ambulances.

Repercussions of Not Having Vehicle Insurance

It is illegal to drive a vehicle without motor insurance as per Motor Vehicle Act. In case a person is found driving a vehicle without it he/she might face the following repercussions:

• Penalties and Fines: In case a person is driving on the road without having even third party car insurance papers for the vehicle then he/she can be charged with hefty fines and can even be sent to imprisonment for about 3 months.
• Inability in Insurance Claims: In case a rider caused an accident with no vehicle insurance of his own then he/she is not entitled to third-party claims. Instead, he/she is liable to pay the compensation to the third party else a case can be filed against the victim.
• Financial burden and stress: Not having vehicle insurance can land the rider into a worrisome situation, especially in case of any medical contingency to the third party. In case the person is hospitalized and the rider got hit then all the medical expenditures have to be borne out by the rider from his/her own pocket money or savings.

Driving with No Vehicle Insurance Fines in Different States

Initially, the penalty for driving without having vehicle insurance was 1000/- rupees but later due to some amendments in the Motor Vehicle Act, it got increased. The table below illustrates the challan rates in different states fined for violating any kind of traffic rules:

Tips to Avoid any Penalties/Fines

It’s an utmost requirement of a person to act responsibly and follow rules and guidelines while driving on the road as set up by the Motor Vehicle Act. Below are some tips to avoid traffic violence fines:

• Storing hardcopies of all the essential documents such as license, RC, and pollution certificate in one’s vehicle is a must
• Storing a soft copy of all these documents on mobile as well as keeping it handy to show instantly in case caught by any traffic policeman.
• Making sure not to miss the renewal dates of the insurance policy in order to avoid any fines.
• Buying the car insurance policy even before it’s on the road. A third-party liability policy is mandatory because of the heavy costs incurred in road accidents by accidentally injuring any third person.

Key Takeaways

Driving and breaking down all the rules certainly thrills but can even kill. So it becomes quintessential to carry vehicle insurance for every owner-driver in India. Being a responsible driver it’s also important to drive within the speed limit maintaining the traffic rules.

The premium amount for any vehicle insurance is decided based on the IDV or the insured declared value. This premium amount gets increased on increasing the IDV and reduces on lowering it. So, it is crucial for all policyholders to compare all types of vehicle insurance options before buying a new policy or renewing the car insurance.

FAQs- Frequently Asked Questions

Q1. Is there any penalty in case of overtaking any emergency vehicle like an ambulance?

Ans: Yes, not giving way to emergency assist vehicles can charge the rider a fine of the desired amount.

Q2. How can one avoid any penalty/fines while driving on the road?

Ans: One must be responsible to keep all the relevant documents such as license papers, insurance papers etc. while driving any vehicle to avoid any penalty or fine.

Q3. How is the Premium amount affected by IDV?

Ans: IDV is referred as Insured Declared Value which is directly proportional to the Premium amount. It gets increases on increasing the IDV while gets reduced on decreasing the IDV