[SJM1214]

It is mandatory for all vehicles on the road to have third-party insurance, but many skip it deliberately.

Data from the General Insurance Council and other market players show that over 60% of motor vehicles in India are uninsured. This comprises mainly commercial vehicles and two-wheelers. Government data available till March 31, 2015, shows that there were over 21 crore registered motor vehicles in India.

India’s road statistics presents a grim picture. According to the Ministry of Road Transport and Highways, the country saw 4.65 lakh road accidents in 2017. Nearly 1.5 lakh people were killed in these accidents, which also left 4.70 lakh injured. These translate into 405 deaths and 1,290 injuries each day from 1,274 accidents. This also means that 16 people are killed and another 53 are injured every hour on Indian roads. Considering that these are the officially reported accidents, there could be a fair number that goes unreported across the country.

Outlookindia Arrticle.

[ani_meher]

60% of which number? Vehicles ever sold, or vehicles plying on road? Seeing the cars and bikes rotting away at every possible corner of the city, no wonder they don't have any insurance. Mostly they are just taking up public space.

Worse are those who are plying on road without insurance. Among these, proportion of running cars uninsured might be lesser than running two wheelers. I have found that some people think insurance is just while buying and selling the vehicle. Rest of the times it is simply jugaad mechanics or catching the collar of the car driver with whom they crash.

Tracking the uninsured vehicles shouldn't be difficult. Government has Vahan data, and insurance companies can be mandated to update the insurance date for each vehicle. This way, there can be a digital tracking without much human intervention.

[saket77]

Originally Posted by SJM1214

It is mandatory for all vehicles on the road to have third-party *insurance, but many skip it deliberately.

Outlookindia Arrticle.

Though this article looks sponsored by some insurance company and they have also not cared to cite the actual data on the claim of 60% vehicles on road to be uninsured, but still I tend to agree with the gist.

Certainly a huge number of vehicles on road are running without valid insurance and this is a danger to everyone on road, and sometimes even off it. But even with existing, supposedly low percentage of insured, IRDA and the insurance companies must be made liable to explain that why mammoth number of third party liability cases are pending in the court? I, myself filed a TP case more than 10 years ago with no judgment as yet.

IRDA has jacked up the premium quite frequently & sharply in the recent years and it will be interesting to know how many have made good their loss by a third party insurance.

IRDA, insurers and the RTO would have done a lot good to the cause if they looked into ways on increasing compliance, rather than wringing people by neck who are sane enough to buy an insurance. Plus, the Government should look to drop GST rates to a lower percent, preferably 5%, for insurance. An 18% tax on premium is a huge overburden on already growing premiums, both for general insurance and term plans. That will be a huge boost to the industry and will see the total premium going down for the good.

Regards,
Saket

[wildsdi5530]

No vehicle can be sold without insurance. Infact, even before registration, a cover note is generated. Hence the insurance companies already have the data. If a person fails to pay the insurance for subsequent years, they can still provide cover while keeping the premium amount on tab. if the vehicle has a claim, the owner can pay off the tab and interest accrued and honor the claim.
Commercial vehicles have to get a fitness certificate every year. and part of that is a valid insurance policy. Hence that statement is wrong.
Agreed that some people may sell their vehicles without transferring the ownership, but how long can the vehicle be used without getting tagged and premium and fines collected. Here in Bengaluru we have had vehicles caught and having hundreds of violations which have to be paid in full. So escaping the long arm of the law. At least not permanently.

[saket77]

Originally Posted by wildsdi5530

No vehicle can be sold without insurance. Infact, even before registration, a cover note is generated. Hence the insurance companies already have the data.

It is never tough for insurers to find such vehicles. A small data mining exercise is more than enough.

Originally Posted by wildsdi5530

If a person fails to pay the insurance for subsequent years, they can still provide cover while keeping the premium amount on tab. if the vehicle has a claim, the owner can pay off the tab and interest accrued and honor the claim.

Insurance industry doesn't work this way. Insurance covers uncertainties, not certainties; by paying off the arising liabilities from the pool of premium received from all insured. With no premium received, we cannot expect them to settle the liabilities.

Settling unpaid premium for the sake of getting claims will result in huge implications.

Regards,
Saket.