# Indian Supreme Court vehicle insurance directives > Live situation record from CLSTR: https://clstr.news/situations/indian-supreme-court-vehicle-insurance-directives > Updated: 2026-08-25T14:17:56.000Z. Sources: 2. Developments: 2. 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. ## Timeline ### 2026-08-25: Supreme Court directs Indian states to form SITs for insurance fraud The Supreme Court of India has ordered states to form Special Investigation Teams to probe widespread fraudulent insurance claims, warning that companies must report all suspicious cases or face management's's- 2 sources. https://clstr.news/cluster/supreme-court-directs-indian-states-to-form-sits-for-insurance-fraud ### 2026-08-04: India Supreme Court orders 'No Insurance, No Fuel' pilot for vehicles India's Supreme Court ordered a pilot linking fuel supply to valid third‑party insurance, using ANPR cameras, after noting 56% of vehicles are uninsured and extending insurance periods to 4 years for cars and 6 13 sources. https://clstr.news/cluster/supreme-court-of-india-proposes-linking-fuel-supply-to-vehicle-insurance-status --- Cite as: Indian Supreme Court vehicle insurance directives. CLSTR, https://clstr.news/situations/indian-supreme-court-vehicle-insurance-directives