MUMBAI: On Indian roads, more than half of the vehicles are operating without the required third-party insurance. The government revealed this in response to a question from the Parliament. In response to a question from Lavu Sri Krishna Devarayalu, finance minister Bhagwat Karad stated that there are 30.5 crore vehicles on Indian roads. This is based on information from the ministry of transportation and highways, and MP, AP, and Lakshadeep are not included. 16.5 million of these vehicles lack insurance.
Additionally, the minister stated that there is no deadline for covering uninsured vehicles and that there is no proposal to provide on-the-spot third-party insurance coverage for motor vehicles. The purpose of third-party insurance is to compensate road accident victims. There is no mechanism in place to ensure compliance, so many vehicles do not have insurance.
In India, third-party auto insurance is required. In any case, numerous vehicles stay uninsured. According to Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance and chairman of the General Insurance Council, "accident victims frequently are unable to get adequate compensation due to the lack of motor insurance, and each year this pushes thousands of families below the poverty line."
The protection controller has been talking about a few measures to safeguard vehicles working without cover. In order to guarantee complete coverage, sector regulator Irdai had suggested that insurance companies collaborate with state governments and compare data from regional transport offices with insured vehicle data.