The Supreme Court on October 30 emphasized the urgent need for uniform motor vehicle insurance policies and immediate corrective measures, noting that more than half of all vehicles in India are currently without valid insurance coverage.
According to a report by LiveLaw, the observation came while the court was hearing an appeal filed by National Insurance Company against a Telangana High Court order directing the insurer to pay around ₹10 lakh in compensation, along with interest, to the family of a victim who died in a 1996 road accident.
During the proceedings, the bench interacted with general managers from 22 insurance companies, officials from the Insurance Regulatory and Development Authority of India (IRDAI), and representatives of the General Insurance Council.
Senior Advocate Joy Basu, appearing for the respondents, informed the court that nearly 50% of vehicles in India remain uninsured. He also urged the court to consider stringent measures to address the issue. The bench observed that a system similar to impounding vehicles for unpaid challans could be explored to ensure compliance with mandatory insurance requirements.
The Supreme Court is expected to deliberate on potential enforcement mechanisms and policy reforms to tackle the widespread non-compliance with motor insurance laws in India.
This development highlights a persistent issue in the motor insurance sector — the country’s insurance penetration has hovered around 50% for years, a statistic that industry stakeholders find deeply concerning.
