if you don’t have vehicle insurance you could get notice from traffic department
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According to sources, the insurance regulator IRDAI has appointed lead insurance companies for each state. The lead insurer of each state will have access to the NIC data of vehicles sold and insured in that particular state. Insurance expert Vishesh Gandhi said that Minister of State for Finance Bhagwat Karad himself has said in response to a question in Parliament that there are 30.5 crore vehicles on the roads. 16.5 crore vehicles are not insured. If this happens in such a situation, a big change will be seen. If this happens, non-life insurance companies will be benefitted a lot. Because motor insurance is the largest market segment for non-life insurance companies.
what is law
As per the Motor Vehicles Act, 2019, it is illegal to drive without an insurance policy. In such a case, the fine for the first time is Rs 2,000/- and/or imprisonment of up to 3 months. For driving without an insurance policy for the second time and thereafter, there is a fine of Rs 4,000. The fine is the same for all vehicles. Amjad Khan, head of Anand Rathi insurance broker, said that people have to be disciplined either by giving rewards or by imposing fines. Despite the third party insurance being mandatory, uninsured vehicles ply on the roads, then it is a matter of concern. In such a situation, if fine is imposed, then there will be a change in thinking. If this happens then there may be a slight increase in the premiums of motor insurance. Currently, the motor insurance segment is huge for non-life insurance. 35-40% of their total premium comes from the motor insurance segment.
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