With the increasing number of on-road vehicles in India, the risk of accidental damage and loss to your car has also grown significantly. To safeguard your vehicle in such cases, a vehicle insurance policy comes in handy.

Even with this crucial benefit, many drivers tend to overlook the need for car insurance. However, in addition to financial protection, driving without insurance in India also attracts hefty fines and other legal consequences.

According to the Motor Vehicles Act 2019, no insurance penalties are levied on every vehicle owner who is found driving in the country without a valid vehicle insurance policy.

Let’s discuss the penalty for driving without insurance in India in detail below.

Penalty for Driving Without Insurance

The Government of India, along with the traffic authorities of each state, revised the traffic violations and fines list under the Motor Vehicles Act 2019.

These revisions aimed to encourage safe driving, increase road safety, and better protect and support victims of on-road accidents. Therefore, they not only increased the number of violations being accounted for but also imposed higher penalties for non-compliance.

As per the laws, long-term vehicle insurance, including third-party coverage, is mandatory for all new vehicles.

The driving no insurance fine for all states in India is as follows -

Are No Insurance Penalties Same for All Vehicles?

Yes, as the penalty for driving without insurance is applicable to all vehicles in India, the standard fine amount of ₹2,000 for the first offence and ₹4,000 for a subsequent offence is also levied on all vehicles. This includes two-wheelers, three-wheelers, four-wheelers, and commercial vehicles.

​Other Consequences of Driving Without Car Insurance Fine

In addition to the monetary penalty of driving without insurance, there are many other consequences of not having valid vehicle insurance.

1. Accidental Damage Expenses - In case your vehicle meets with an accident, you will have to cover the repair and replacement expenses on your own, which can cause a significant dent in your savings.
2. Third-Party Liabilities - If your uninsured vehicle causes any loss or damage to a third party or their property, you will be responsible for the compensatory and legal expenses, which will increase your out-of-pocket costs.
3. Licence Suspension - In some cases, frequent offences of driving without insurance can result in licence suspension for a predetermined period, reducing one's ability to drive a vehicle.
4. Vehicle RC Suspension - If your insured vehicle causes significant damage to another car or a pedestrian and you do not have valid vehicle insurance, your vehicle registration may also be suspended.
5. Claim Gaps - Licence suspension is a potential consequence of driving without insurance, so even if you buy a valid insurance policy later, you might not be able to file a claim until your DL is released. This is because a driving licence is required to claim insurance benefits.

Benefits of Insurance for Driving in India

Reduced No Insurance Penalties

One of the most significant benefits of purchasing a valid insurance policy for your vehicle is the reduced risk of penalties and challans. The traffic authorities are very strict on promoting increased road safety for everyone, and thus, complying with the mandatory rule of valid insurance ensures you do not add too many challans under your vehicle.

Financial Protection for Third-Party Liabilities

With insurance coverage, you can get the necessary financial support in case of third-party liabilities that may otherwise leave you with hefty expenses and other unexpected out-of-pocket costs.

No Claim Bonus

Driving safely and complying with all the traffic rules and regulations listed under the Motor Vehicles Act allows you to benefit from claim-free and penalty-free years. An added advantage of a claim-free year is the No Claim Bonus, which can help with discounted premiums at the time of policy renewal.

Vehicle Protection

Another benefit of having vehicle insurance for your car or bike in India is complete vehicle protection with ample customisation flexibility. This ensures you get the necessary financial coverage in the event of an accident, theft, vandalism, natural disasters, and so on while safeguarding your finances.

Tips to Avoid No Car Insurance Penalty

1. Always carry both physical and digital copies of your vehicle insurance.
2. Set reminders for policy renewals to ensure they are completed on time to avoid any fines.
3. Ensure the purchase of third-party or comprehensive car insurance, as third-party coverage is mandated by law.
4. When driving in India, keep all the other necessary vehicle and personal documents handy, in addition to the insurance document.
5. Even when you buy a second-hand vehicle, ensure you purchase the necessary insurance or get the previous owner to transfer the insurance in your name to avoid fines.

Conclusion

Driving without valid insurance is a significant offence in India. It not only attracts no insurance penalties but also puts your savings at stake in case of unfortunate circumstances.

Whether you own a two-wheeler or a four-wheeler, an insurance policy is necessary to maintain your vehicle and financial well-being. Many different bike and car insurance policies are available in India to ensure there is something for everyone.

Reliance General Insurance offers a wide range of car insurance policies to cater to the specific coverage needs of vehicle owners.

Moreover, for the added convenience of continuous coverage without the hassle of yearly renewals, we offer long-term car insurance plans to keep you safe from penalties and other financial liabilities.

Frequently Asked Questions

How do you pay the penalty for driving without insurance online?

• Visit the E-challan Parivahan website.
• Add your vehicle registration number along with the captcha code.
• Select the “Get Detail” option.
• Click on the challan you wish to pay and select “Pay Now”.
• Make the payment and collect the receipt.

What happens if you are caught driving without valid insurance?

If you are caught driving without valid insurance, the traffic police officer will first issue a challan on your vehicle. You will then be required to pay the challan within 60 days to avoid other legal consequences.

Tips to choose a car insurance policy.

• Assess your coverage needs.
• Set a budget. 
• Compare different car insurance policies.
• Understand different policy inclusions and exclusions.
• Explore customisation flexibility with the range of add-ons provided by an insurer.
• Check customer testimonials and reviews.
• Review claim settlement ratio.
• Assess the availability of customer support.