Driving without insurance may cost you Rs.10,000 and Rs.25,000 for two and four wheeler respectively

A recent study by New India Assurance Company has found out that nearly 70% of the two wheelers plying on Indian roads do not have insurance cover in spite of motor insurance being mandatory in the country. The study further says that 1/3^rd of the cars and trucks are also uninsured. How about you? Do you have valid motor vehicle insurance?

As per the 2013 WHO report on road safety, India ranks first in the world in number of road accidents at 1.3million deaths. According to this report, road traffic injuries are the sixth leading cause of death in India. The increase in the two wheeler deaths was 25% between 2009 and 2010. According to the World Health Organization (WHO), the death rate per 100,000 populations for road traffic accident has increased from 16.8 in 2009 to 18.9 in 2013. If these statistics don’t scare you, the following information would surely change your attitude towards motor vehicle insurance.

If the proposed Road Transport & Safety Bill is passed by the Parliament without any changes, then a motorcyclist caught riding without a valid MV insurance policy, will end up paying a penalty of Rs 10,000 while owners of light motor vehicles and auto rickshaws will end up with a fine of Rs 25,000. For any car or a truck driver caught doing the same, the penalty payable would be Rs 75,000. The current fine for any category of vehicles plying without motor insurance is a fine of Rs 1,000.

Greasing the palms of the policemen who is going to fine you Rs.10,000 or Rs. 25,000 would hurt you more than the actual premium. Does motor insurance suddenly seem cheaper? Most two wheeler owners are youngsters in the age bracket of 18-35yrs, for whom taking insurance is of least priority. Waste of money, waste of time going to renew the policy and so on are often quoted as the reason for not taking insurance. It is not that motor vehicle users are not aware of the benefits of having insurance and the legal aspects of having the same, it is just the over confidence and the attitude ‘it will not happen to me, I don’t need it.’

Insurance companies are in the seventh heaven as they say this new rule would ensure that the insurance penetration would tremendously improve.  These insurance companies are in favour of taking it one step further by saying that the license of motor owners without insurance should be cancelled. To what extent the government would take the applicable punishment for vehicles plying without insurance is to be waited and seen.

Don’t take a chance. Insure and be safe.