If you own a car, it is mandatory to have a car insurance policy to drive it anywhere in India. In the absence of a valid policy, you can be fined or face imprisonment, or both, depending on the situation. In India, it is common for traffic police to nab people driving a car with an expired policy, or even without one. Read on to know more about the rule and other problems related to expired policies and penalties.
According to the Motor Vehicle Act 2019, driving or riding in an uninsured vehicle can attract harsh punishments. The fine for driving without insurance is the same for all vehicles—personal four-wheelers, two-wheelers and commercial vehicles. The fine must be paid within 15 days, failing which you will have to pay a late fee. The first time you are caught driving a car without valid insurance, you will have to pay a fine of ₹2,000 or face imprisonment of up to three months, or both. For a repeat offender, the fine is ₹4,000 with/without imprisonment of up to three months. The law enforcers may also suspend your driving licence until you renew your policy or purchase a new one.
Process of paying fine
There are two ways in which you can pay the fine:
- Online
You can pay the fine online at the official website of the state transport department, where you are located, or at the portal of the local traffic police. Payment through debit or credit card or digital wallets is accepted. You will get a confirmation message when the payment is received.
- Cash
You can make a cash payment to the policeman on duty on the spot or at the nearest traffic police station. You will get a receipt after making the payment.
What is third-party insurance?
The Motor Vehicle Act introduced the mandatory third-party liability policy to deal with the increasing number of deaths due to car accidents. Third-party car insurance, or third-party liability policy, offers financial and legal protection to the policyholder for the following:
- Damages to third-party property or vehicle due to an accident involving the insured vehicle.
- Injury to the third party in an accident caused by the insured vehicle.
- Death of the third party due to an accident involving the insured car.
- Any legal support you may require regarding the accident.
You have to renew your liability policy on time—through offline or online mode—to enjoy the benefits of coverage without interruption. Remember, third-party-only insurance policy does not cover any damage to the policyholder’s car. It is thus recommended that you buy a comprehensive car insurance policy for complete protection. Note the following terms:
- First party – this is the policyholder or buyer of the policy
- Second party – the insurance company or the insurer
- Third party- an individual who demands compensation against damage to himself or his property, caused by the first party
Renew your auto insurance at the earliest to avoid the many hassles of driving without one. Since most insurers offer online purchase, renewal and transaction options, opt for car insurance policy online to drive your car without stress anywhere across the country. Additionally, if you’re a new car owner, you should choose an insurance provider for your new car right away..