Archive · 7 Aug 2026
Supreme Court extends mandatory insurance for new cars and bikes
Cars and motorbikes can sometimes crash into people or damage their things, and if that happens the driver must pay for the harm they caused.
Insurance is like a money-safety blanket that helps pay these costs.
The Supreme Court of India made a new rule about this kind of insurance.
When someone buys a new car, they must have third-party insurance for four years.
When someone buys a new two-wheeler, they must have it for six years.
Before this rule, cars needed three years of cover and two-wheelers needed five years.
The court was worried because many vehicles on Indian roads have no insurance at all.
It also wants police to help finish old accident payment cases more quickly.
The court even suggested that vehicles without insurance should not be allowed to buy fuel at petrol pumps.
The Supreme Court of India extended mandatory third-party insurance for new vehicles by one year, requiring four years of coverage for new cars and six years for two-wheelers at purchase or registration.
Previously, buyers were required to obtain three-year third-party cover for cars and five-year cover for two-wheelers.
The court observed a 'shocking' number of vehicles ply on Indian roads without valid third-party insurance, forcing accident victims' families to 'run from pillar to post' for compensation.
The court proposed a system where vehicles without insurance could be denied fuel at petrol pumps.
The Supreme Court also directed state police to file Detailed Accident Reports and expedite pending compensation cases at Motor Accident Claims Tribunals for accidents before March 31, 2022.
- Who
- The Supreme Court of India, which issued the ruling, and new vehicle buyers in India affected by the insurance requirement.
- What
- The court extended mandatory third-party motor insurance for new vehicles by one year (four years for cars, six years for two-wheelers) and issued directions to speed up pending accident compensation cases.
- When
- The ruling was announced on Tuesday; the exact date is not specified in the article.
- Where
- India
- Why
- To address the 'shocking' number of vehicles plying without valid third-party insurance and to help accident victims secure compensation more easily.
- Issuing authority
- Supreme Court of India
- New third-party cover for new cars
- 4 years (up from 3 years)
- New third-party cover for new two-wheelers
- 6 years (up from 5 years)
- Previous cover for cars
- 3 years
- Previous cover for two-wheelers
- 5 years
- Proposed measure for uninsured vehicles
- Denial of fuel at petrol pumps
- Tribunal directions apply to
- Accidents before March 31, 2022
- Expert cited
- Paras Pasricha, Business Head of Motor Insurance, Policybazaar