Supreme Court of India Extends Mandatory Vehicle Insurance Periods

The Supreme Court of India extended the mandatory third-party insurance period for new vehicles on August 4, 2026, increasing requirements to four years for cars and six years for two-wheelers. The court took this action after finding that nearly 56 percent of vehicles on Indian roads—approximately 16.54 crore out of 30.48 crore—remain uninsured, which often delays or defeats statutory compensation for accident victims.

To enforce compliance, the court directed the Ministry of Road Transport and Highways and the Insurance Regulatory and Development Authority of India to develop a pilot project that allows petrol pumps to refuse fuel to uninsured vehicles. The Ministry of Petroleum and Natural Gas expressed no objection to this proposal in principle. The court further ordered the integration of Automatic Number Plate Recognition cameras with the VAHAN portal and the Insurance Information Bureau to enable automatic e-challans, while requiring that police be equipped with real-time verification apps.

These directives were issued while the court dismissed an appeal by National Insurance Company Ltd. regarding a motor accident claim. The court upheld a Telangana High Court order requiring the company to compensate the family of a deceased man, emphasizing that claims tribunals should avoid a hyper-technical approach toward victims to prevent them from being drawn into prolonged litigation.