Nearly 56% of vehicles plying on Indian roads do not have valid motor insurance, despite it being mandatory by law. The Supreme Court has termed this a serious enforcement gap. It has now proposed a series of measures, from automatic e-challans to a possible 'no insurance, no fuel' system, to improve compliance.
The directions came while the Supreme Court was hearing an appeal filed by National Insurance Company Ltd. in a motor accident compensation case. Although the insurer's appeal was dismissed, the court expanded the scope of the proceedings to address the broader issue of uninsured vehicles and enforcement gaps.
