Wednesday, 5 August 2026

Vehicle insurance enforcement by the Supreme Court: A defence of two-wheeler owning Indians

 


According to a parliament committee report, more than half the vehicle-owning Indians (most of them two-wheelers) don't pay annual insurance for their vehicles. The Supreme Court has expressed shock at this information, but it further demonstrates that the judges are part of a class of Indians whose lives are very different from those of common citizens. The govt. provides the judges cars with insurance until their retirement, and they can afford the same after retirement, from their pension, which is Rs. 13.5 lakhs per annum for Supreme Court and High Court judges. However, annual insurance is a burden for most two-wheeler owners who belong to the middle class in India.

At the core, it is an unfair enforcement for the middle class people but generates huge revenue for insurance companies and government because only a small percentage of insurers injure anybody, while every vehicle owner is forced to compensate by paying annual insurance.

To ensure compliance, the Supreme Court wants to stop fuel to uninsured vehicles and install automatic challan issuing system by scanning the number plates of all vehicles. The stated objective of the court is to ensure speedy compensation for accident victims, but why not the govt. pay the compensation for its citizens dying in road accidents, because it taxes every vehicle and liter of petrol sold in the country? 

There are already rules to penalise and jail vehicle owners without insurance It is unfortunate that the court comes up with draconian measures affecting a large number of people by initiatives that are in the domain of the elected representatives. The court has required compliance of its orders from the govt. by 14th August. Ironicially on the eve of celebration of freedom from colonial rule in India,  this would increase surveillance and tax enforcement on people who obviously find these unaffordable. 

Finally, shouldn't the judiciary rather concentrate on hearing and judging millions of pending cases than taking such fresh administrative roles and responsibilites? 

Ref: https://timesofindia.indiatimes.com/india/56-of-vehicles-not-insured-sc-says-challan-them/articleshow/132873924.cms