No Insurance, No Fuel? Supreme Court Proposes Pilot Project to Tighten Vehicle Insurance Compliance
SC asks IRDAI and Road Transport Ministry to explore a 'No Insurance, No Fuel' model, while ANPR cameras and digital verification could strengthen enforcement against uninsured vehicles.
New Delhi | August 5, 2026 Driving a vehicle without valid insurance could soon become significantly more difficult in India. The Supreme Court has proposed a pilot project based on the "No Insurance, No Fuel" model, under which petrol pumps may refuse to provide fuel to vehicles that do not have valid insurance coverage.
The court has directed the Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Road Transport and Highways (MoRTH) to prepare a pilot project to examine the feasibility of verifying a vehicle's insurance status before fuel is dispensed. If implemented, vehicles without valid insurance could be denied petrol or diesel at participating fuel stations.
The proposal is part of the Supreme Court's broader effort to improve road safety and ensure stricter compliance with motor insurance regulations. The court also suggested integrating Automatic Number Plate Recognition (ANPR) cameras installed on highways and roads with the VAHAN vehicle database and insurance records. This would enable authorities to automatically identify uninsured vehicles and issue e-challans without manual intervention.
In another significant move, the Supreme Court has increased the mandatory third-party insurance period for new vehicles. The compulsory insurance duration for new private cars has been extended from three years to four years, while for new two-wheelers, it has been increased from five years to six years.
To strengthen on-road enforcement, the court has also recommended equipping traffic police with mobile applications or handheld devices that can instantly verify a vehicle's insurance status during routine inspections.
If the proposed pilot project proves successful, the "No Insurance, No Fuel" policy could become a major step toward improving insurance compliance, enhancing road safety, and reducing the number of uninsured vehicles operating on Indian roads.
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