Published On : Fri, Feb 19th, 2021

Penalty for Driving Without Car Insurance in India


Driving accidents happen every day. In 2018 alone, more than a lakh people died due to car accidents in India, according to a report. The death toll and serious injuries on the road are far more common than you might think, and it is our collective responsibility as citizens of the country to prevent this from happening as much as we can. Even if you drive safe, someone else can damage your vehicle or cause you injury on the road as well.


Car driving is something we all take for granted but in fact, it is a risky business. Therefore, the Government of India has made it mandatory for vehicle owners to have bike and car insurance policy. Motor insurance is a security cover that safeguards and protects you and your vehicle against damage or loss, and even third-parties who might be involved in an accident.


It is illegal to drive a car in India without having car insurance, and anyone who does not have car insurance will be penalized adhering to the guidelines of the Motor Vehicles Act, 2019. As per this new Motor Vehicle Act, the penalty for a first-time offence is Rs. 2,000/- and/or imprisonment for a duration up to 3 months. This fine has been increased with the new amendment, as previously the fine was only Rs. 1,000/- and/or imprisonment up to 3 months duration. According to the Motor Vehicles Act 2019, if one continues the same and there is a second-time offence driving without car insurance, then there is a more severe penalty of Rs. 4,000/- and/or imprisonment up to 3 months. This penalty isn’t just applicable to car insurance, but also for two-wheeler insurance.


If a traffic police officer catches hold of someone driving without car insurance, then there will be action against him/her, and this is the procedure that will be followed –


  • They will be required to stop their car on the side of the road or at the nearest traffic police booth.
  • They will be asked for the car registration papers and the driving license. If these papers are in place, then they will not be accused of any other offence.
  • They will be issued a challan for driving without insurance. This challan or fine can be paid online or offline.


If you have been charged with a challan for driving without a valid third party car insurance cover, here is how you can pay this fine –


  •     Offline: Visit the nearest traffic police station in your locality, ask for the outstanding amount you need to pay and clear your dues.
  •     Online: Visit the website of the state transport’s department and find the e-challan section. Once you click on it, enter your car or bike number, challan number, and other details, then add the captcha code. You can pay using your credit/debit card or do it through e-wallets. You will then receive a confirmation receipt message. If you don’t pay, then it can result in an even greater fine in the future.


To avoid having a fine, make sure you have all documents in place – license, pollution certificate, registration certificate, and also keep a soft copy of these on your phone. Third-party car insurance is mandatory so make sure never to miss your car insurance renewal date.