Ministry of Road Transport & Highways is in the process of identifying vehicles which are not insured against mandatory third party risk with the help of its data base. The Transport and Police Departments of all States have been requested to launch a special drive to check and enforce possession of certificate of insurance by all vehicle owners in public places.
Every motor vehicle owner is required to obtain insurance against third party risk in terms of S.146 of Motor Vehicles Act, 1988 (MV Act). S.130 of the MV Act requires that every owner or driver of a motor vehicle shall produce certificate of insurance in respect of the vehicle to the authorized officer of the Motor Vehicles Department.
The failure to do so could result in a penalty of imprisonment up to 3 months or fine up to Rs.1000