Fuel Pumps May Soon Check Vehicle Insurance Before Refuelling
What Happened
The Insurance Regulatory and Development Authority of India (IRDAI) is set to pilot an Automated Number Plate Recognition (ANPR) system that will match vehicle registration numbers with data from the Insurance Information Bureau (IIB) and VAHAN databases. The move aims to implement the Supreme Court's proposed“no insurance, no fuel” policy, under which fuel stations could eventually deny petrol or diesel to vehicles without valid third-party motor insurance. The pilot is expected to be tested in select cities.
Key Takeaways
The initiative seeks to tackle India's large uninsured vehicle population, which the Supreme Court said accounts for roughly 56% of registered vehicles. If successful, the system could significantly boost compliance with mandatory motor insurance rules while improving compensation protection for road accident victims.