What Are The Consequences Of Not Having Insurance When Driving A Car?

Car insurance is mandatory by law in India. This makes it illegal to drive a car which does not have insurance against it. While this mandate can be a little inconvenient for people because it requires paying yearly premiums, It provides benefits like covering damage repair costs, personal accident medical costs (if you were the one driving), compensation in case of car theft, access to a large network of premium garages and many more.

Car insurance also covers the third party liabilities the question of which arises when you are responsible for the damage or injury of a third party in case of an accident. Since it is mandatory by law, not having insurance against your car poses serious problems.

What Happens When You Are Caught Driving A Car With No Insurance?

According to the Motor Vehicle Act 2019, it has become quite significant to know the consequences you might face if you own a car without insurance.

Having insurance against your vehicle also gives you the right to sue a third party involved in the accident to pay for the losses and damages. However, the same applies to the third party also.

When you are caught driving a vehicle without insurance, you incur penalties. The penalty system in India used to be light and with the increasing number of accident deaths in the country, the regulation was revised to increase the fine amount to discourage skipping insurance.

Previously, an amount of ₹1000 used to be levied as a fine upon being caught driving without insurance. With the revised Motor Vehicle Act in 2019, the penalty amount has been increased to ₹2000 for the first time being caught and ₹4000 next time for the same and/or up-to 3 years of jail.

As some people think they can easily get away with a fine, the third or subsequent times after the above-mentioned situation might lead to the following two possibilities:

• Driving without valid car insurance might result in the suspension of your driving licence.
• In the worst-case scenario, your vehicle’s registration might get suspended as well.
• Furthermore, in case of a bad accident which results in the death or permanent physical damage to a third party, you might get sued and get your driving licence cancelled. It might also lead you to pay for both the penalty to court as well as to the third party.

Endnotes

The mandate on car insurance by law has become indispensable in modern times where inflation is high and vehicles depreciate rapidly. It is important to consider insurance against your vehicle to save yourself from the probability of getting your licence cancelled or jail time. The situation is much more serious than just paying penalty charges on the road. It is a duty as an Indian citizen to ensure safety while driving.

Also read - What Is The Best Way To Check Your Car Insurance Details Using Your Registration Number?