"Supreme Court mandates extended third-party motor insurance, proposes fuel-denial enforcement"
Third-party motor insurance
mandatory cover protecting accident victims against liability of the vehicle owner/driver
IRDAI
statutory regulator for the insurance sector in India, sets third-party premium rates
Road safety governance in India operates under the Concurrent List (List III, Seventh Schedule) of the Constitution, giving both Parliament and state legislatures legislative competence, with central law prevailing in case of conflict. The primary legislation is the Motor Vehicles Act, 1988, substantially amended by the Motor Vehicles (Amendment) Act, 2019, which raised penalties for traffic violations, mandated cashless treatment during the golden hour following accidents, and created a framework for a National Road Safety Board. India records over 1.5 lakh road fatalities annually, placing it among the worst globally on this metric.
Third-party motor insurance is a statutory requirement under the Motor Vehicles Act — it protects accident victims (third parties) against the negligence of vehicle owners or drivers. The Insurance Regulatory and Development Authority of India (IRDAI) is the statutory regulator for the insurance sector, while the Insurance Information Bureau of India (IIB) maintains a centralised database of insurance policies. The VAHAN portal, managed by the Ministry of Road Transport and Highways (MoRTH), holds vehicle registration data. Despite this institutional architecture, a large proportion of vehicles on Indian roads remain uninsured, leaving accident victims without timely recourse to compensation.
The apex court had previously addressed this gap in its 2018 judgment in S. Rajaseekaran v. Union of India, which required purchasers of new vehicles to obtain three-year third-party insurance for cars and five-year cover for two-wheelers at the time of purchase or registration. That direction was itself a judicial intervention to plug an enforcement deficit that the executive had failed to address through routine regulatory action.
Third-party motor insurance is compulsory under the Motor Vehicles Act, 1988 and is distinct from own-damage or comprehensive insurance. It covers liability arising from injury, death, or property damage caused to a third party by the insured vehicle. Motor Accident Claims Tribunals (MACTs) are the quasi-judicial bodies established under the Act to adjudicate compensation claims — they are the primary forum for accident victims seeking relief, and their mounting pendency is a systemic governance concern.
The IRDAI sets premium rates for mandatory third-party insurance in consultation with the government, while insurers are free to price optional covers competitively. The General Insurance Council (GIC) is the self-regulatory body of general insurers in India. …
With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following?
With reference to third-party motor insurance in India, consider the following statements:
1.It is mandatory under the Motor Vehicles Act, 1988.
2.The Insurance Regulatory and Development Authority of India (IRDAI) sets the premium for mandatory third-party cover.
3.The Insurance Information Bureau of India (IIB) is the statutory regulator for the insurance sector.
Which of the statements given above is/are correct?
The Supreme Court's power to pass any order necessary for doing complete justice in any cause or matter pending before it is derived from which Article of the Constitution of India?
Consider the following pairs:
Institution / Portal — Primary Function
1.VAHAN portal — Centralised vehicle registration database
2.Insurance Information Bureau (IIB) — Statutory regulator for the insurance sector
3.Motor Accident Claims Tribunal (MACT) — Adjudication of road accident compensation claims
4.General Insurance Council (GIC) — Self-regulatory body of general insurers
How many of the above pairs are correctly matched?
With reference to the Motor Vehicles (Amendment) Act, 2019, which of the following provisions were introduced by it?
1.Cashless treatment during the 'golden hour' following a road accident
2.Framework for a National Road Safety Board
3.Mandatory third-party insurance for new vehicles at the time of purchase
4.Motor Vehicle Accident Fund for compulsory cover including hit-and-run victims
Select the correct answer using the code given below:
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