In a recent hearing on road safety, the Supreme Court proposed a new enforcement tool for motor insurance. The idea is that petrol pumps could refuse to dispense fuel if a vehicle’s insurance has expired.
The Ministry of Petroleum and Natural Gas told the court that it would not object to linking pump systems with insurance databases. This shows government support for the technology.
If the plan is adopted, a pump’s computer would check a car or bike’s insurance status before it can get petrol or diesel. The check would happen automatically, with no need for the driver to show a paper.
The Court also wants ANPR cameras to connect with the Insurance Information Bureau and the VAHAN portal. That way traffic authorities could spot uninsured vehicles instantly and issue electronic challans.
Venkatesh Naidu, CEO of Bajaj Capital Insurance Broking, said the move would make insurance easier to see and renew. He added that it would help build a safer road environment.
The proposal follows earlier Supreme Court orders that required three‑year third‑party insurance for new cars and five‑year coverage for new two‑wheelers. Yet many owners still let their policies lapse.
Driving without valid insurance now carries a Rs 2,000 fine on the first offence, up from Rs 1,000. Still, many vehicles on the road remain uninsured.
Paras Pasricha of Policybazaar said technology could boost compliance. He believes linking ANPR with insurance databases will help bring more vehicles into coverage.
Uninsured vehicles can cause long legal battles for accident victims. Mandatory insurance ensures victims are compensated without waiting years for a lawsuit.
If the Supreme Court’s directions are put into practice, motorists will have yet another reason to renew insurance on time. Without valid cover, refuelling could even be denied.