'Over 50 Percent Vehicles In India Plying Without Insurance', Supreme Court Expresses Shock
The Court asked for suggestions to enforce the mandate for insurance for plying vehicles.
The Supreme Court today expressed shock on learning that over 50 percent vehicles plying on roads in India are not insured.
A bench of Justices Sanjay Karol and Prashant Kumar Mishra was dealing with an Insurance Company's challenge to a Telangana High Court order which directed it to pay the claimants compensation amount of Rs.10 lakhs (approx.) alongwith interest. The claimants had lost their family member in a 1996 accident.
The judges interacted with General Managers of 22 Insurance Companies, the Insurance Regulatory and Development Authority of India (IRDAI), and the General Insurance Council, when they were told by Senior Advocate Joy Basu (for respondents) that nearly 50% of vehicles in India are not insured as on date.
"My God! 50 percent?" exclaimed Justice Karol.
Basu confirmed that over 50 percent vehicles are not insured and suggested that the bench may consider issuing directions for coercive steps to remedy the situation. Justice Karol replied, "that's a good point. Suggest [measures]...we will issue directions...". The judge also orally commented that there can be a system in place, like impounding of vehicles when challans are not paid.
In this regard, Advocate Meenakshi Midha (for petitioner) suggested that the Union Ministry of Road Transport and Highways may be a relevant party. Accordingly, the bench impleaded the Ministry and called for the assistance of ASG Archana Pathak Dave.
Case Title: NATIONAL INSURANCE COMPANY LIMITED Versus SMT. THUNGALA DHANA LAXMI AND ORS., SLP(C) No. 8563/2025