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What is the Penalty of Driving Without Car Insurance in India?

With the current updates in the Motor Vehicle Act 2019, it has become even more essential to understand the various aspects that can affect you as a vehicle owner. One of such aspects is to remember the importance of having a valid car insurance/bike insurance policy. 
In case you fail to have the same, you will be penalized. Refer the table below to know about the increased fine-​

​SectionOffence​​Previous PenaltyNew Minimum Penalties
​196Driving without insurance​Fine of Rs. 1000 and/or punishment up to 3 months​Rs. 2000 and/or imprisonment up to 3 months for the first offence and fine of Rs. 4000 and/or imprisonment up to 3 months for the second offence.

In event of any accident damage loss of your vehicle, a car insurance plan is your savior. It also protects you financially if your vehicle is stolen.

An automobile insurance policy offers risk coverage for a car or any two wheeler vehicle which runs on fuel and needs a license. Today there are many companies which offer car in​surance in India.

As per Indian law, it is compulsory for any vehicle owner to buy a motor insurance. If you are caught driving without any motor insurance, you will have to face related consequences. Without insurance, fine will be incurred. You should know the fine will be incurred as mentioned above.

The penalty for driving without insurance is different for different countries​, however, some of the common punishments are as follows:
  • Driving without a motor insurance shall result in suspension of your driving license.
  • In addition, your vehicle’s registration too shall be suspended.​
Car insurance in India are basically of two types: a) Comprehensive and b) Third Party Only.

While the third party only insurance offers risk coverage only in case of damage/losses caused to the third party; the comprehensive car insurance cover also takes care of your personal loss/damage in event of an accident.

A motor insurance​​ with comprehensive cover generally does not include following risks:
1. Normal vehicle depreciation
2. Regular wear and tear
3. Any damage/loss incurred due to drunken driving
4. Any damage/loss incurred when driving without proper licenses

Now that you know of the consequences, ensure that you don't become a victim of without insurance fine by opting for a valid motor insurance policy.​