Indian Supreme Court vehicle insurance directives

The Supreme Court of India has issued several directives aimed at improving vehicle insurance compliance and integrity. Initially, the Court directed the central government to prepare a pilot project that would deny fuel to vehicles lacking valid third-party insurance. This proposal involves using Automatic Number-Plate Recognition (ANPR) cameras to verify insurance status against national databases, addressing the issue that approximately 56% of Indian vehicles are uninsured.

Subsequently, the Court addressed insurance fraud, directing all states to establish Special Investigation Teams (SITs) to investigate suspicious claims. The ruling follows reports of fraud ‘of enormous proportion,’ including instances where the same vehicle is reported in multiple accidents. The Court mandated that insurance companies must forward all suspicious claims to these SITs and held management accountable for any selective reporting. Insurers are also required to take departmental action against officials if investigations suggest their involvement in facilitating fraudulent activities.