DRIVING WITHOUT MOTOR INSURANCE UNDER MOTOR VEHICLE ACT, 1988.

Motor insurance

Table of Content:

1. Introduction

2. Meaning of Motor Insurance.

2.1. What Motor Insurance covers.

2.2. What Motor Insurance excludes.

2.3 .Period of the Insurance Policy.

3. Driving without Insurance under Motor Vehicle Act 1988.

3.1. Fine for driving uninsured motor vehicle in different states.

3.2. Consequences of not having Insurance.

3.3. Guidance on how to avoid challans for not having an insurance policy.

4. Conclusion.

1. Introduction

Traffic rules are often seen as hindrances that inconvenience us. But in realty these rules are made for our protection and road safety. The importance of wearing helmets or seatbelts, driving without a mobile phone, or investing in motor insurance is not negotiable.

In this article, we are going to discuss about driving uninsured vehicle and its consequences. Before going to the main topic let us discuss about the meaning of the Motor Insurance.

 

2. Meaning of Motor Insurance

Motor Insurance gives protection to the vehicle owner against;

  1. Damages to his/her vehicle, and,
  2. Pays for any Third Party Liability determined as per law against the owner of the vehicle.

The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place.

2.1. What Motor Insurance covers:

The Motor Insurance policy’s OD section usually covers damage to the vehicle caused by the following perils:

  1. Fire, Explosion, Self-Ignition, Lightning
  2. Burglary.
  3. Riot and Strike
  4. Flood, Storm, Cyclone, Hailstorm, frost etc.
  5. Accidental external means
  6. Malicious act
  7. Terrorism acts
  8. While in Transit by Rail/ Road, Inland waterways, Lift elevator or Air
  9. Land slide/ Rock slide
  10. Earthquake

2.2 What Motor Insurance excludes:

The following circumstances are not covered under the Motor Insurance Policy:

  1. Not having a valid Driving License
  2. Under influence of intoxicating liquor/ drugs
  3. Accident takes place beyond Geographical limits
  4. While Vehicle is used for unlawful purposes
  5. Electrical/Mechanical Breakdowns.

2.3 Period of the Insurance Policy:

The policy is generally valid for one year and needs to be renewed before the due date. Premium must be paid on time. There is no grace period for paying the premium. In case of lapse of policy by even one day, the vehicle has to be inspected. In addition, if a comprehensive policy is allowed to expire beyond 90 days, the NCB (No Claim Bonus) benefit that was accrued will also be lost.

 

3. Driving without Insurance under Motor Vehicle Act, 1988

According to Section 196 of the Motor Vehicle Act, 1988, driving a vehicle without insurance is a crime that can result in a penalty or imprisonment. For the first offence a person has to undergo imprisonment up to 3 months and/or has to pay a penalty of Rs. 2,000/- earlier it was Rs.1,000/-. For a subsequent offence, he might be punished for 3 months or Rs. 4,000/- fine or both.

The penalty can differ depending on the state. In some states, the punishment for driving uninsured vehicle is 3 months imprisonment along with the fine or challan.

 

3.1. Fine for driving uninsured motor vehicle in different states:

Earlier the penalty for driving uninsured vehicle was Rs. 1,000/- however, with the amendment in the Motor Vehicle Act, the challan for the said traffic violation has been increased. The challan or penalties vary from one state to another. There are examples of some states; they are:

States                                                    Traffic fine (Rs)

Karnataka                                              1000-4000

Punjab                                                    2000-4000

Delhi                                                       2000-4000

Assam                                                     2000-4000

Bihar                                                       2000-4000

 

3.2. Consequences of not having Insurance:

Other than penalties and imprisonment as per the Motor Vehicle act, 1988, a person is likely to face the financial burden and stress. His/her financial stability and health is at risk without insurance especially in a situation where he/she is supposed to pay the compensation to the other party. For example, if he/she caused the accident and the other person is hospitalized, he/she needs to bear the complete medical expenditures.

 

3.3. Guidance on how to avoid challans for not having an insurance policy:

A person should follow the traffic rules while driving a vehicle. There are some tips/ guidance to avoid the fines; they are:

  1. A person has to carry all the important vehicle documents including the insurance copy.
  2. He/she has to store a soft copy of the said documents.
  3. He/she has to carry the renewed copy of insurance documents.
  4. The insurance should be purchased as soon as he/she purchases the vehicle.

 

4. Conclusion

The new Motor Vehicles Act, 2019 has been introduced with strict penalties so that people will follow the traffic rules strictly. Motor Insurance is not only mandatory but also beneficial in dealing with third-party liabilities and unforeseen losses.

Motor Insurance is essential for vehicle owners to protect themselves and their vehicles. Nowadays, people can easily buy insurance policy online. Therefore, it is essential to buy insurance for their vehicles.

Written by Nireesha Rao

References:

 

 

Best law firm in Bangalore – Motor Vehicle Lawyer, Accident lawyer, Insurance claim

 

 

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