The Supreme Court on August 4 directed the Insurance Regulatory and Development Authority of India (IRDAI), in consultation with the Ministry of Road Transport and Highways (MoRTH), to evolve a pilot project linking the purchase of fuel at petrol pumps with a vehicle's valid insurance status. Under the proposed system, vehicles without valid insurance could be refused fuel until cover is obtained. The Ministry of Petroleum and Natural Gas has, in principle, expressed no objection.
Observing that nearly 56% of vehicles on Indian roads — 16.54 crore of 30.48 crore — are uninsured, the court said the move would have a two-fold benefit: identifying uninsured or unregistered vehicles, and prompting owners to maintain valid insurance. The court noted the system could operate through Automatic Number Plate Recognition (ANPR) cameras already deployed on highways.
The bench also directed that ANPR cameras be integrated with the Insurance Information Bureau and VAHAN portal to issue automatic e-challans to uninsured vehicles, and that state police be equipped with handheld devices or mobile apps for real-time verification of insurance status during roadside inspections.
In a related direction, the court asked for a pilot project enabling citizens to verify the insurance status of any vehicle — distinguishing third-party-only from comprehensive cover — so passengers, employers and transporters can check compliance and report uninsured vehicles.
Sources: Indian Express, The Print, New Indian Express (August 4, 2026)