44% vehicles plying onIndian roads uninsured, informs Govt
New Delhi, March 11 -- As many as 44% of vehicles plying on Indian roads are uninsured, the government informed the Rajya Sabha on Wednesday, highlighting a major compliance gap in mandatory third-party insurance requirements under the Motor Vehicles Act.
The figure is based on active vehicles listed in the VAHAN database as of March 6, 2026, considering the validity of their registration and fitness status, Union minister of road transport and highways Nitin Gadkari said. He was responding to a set of questions from BRS MP KR Suresh Reddy, who also asked how victim compensation is arranged in instances involving uninsured vehicles.
Ideally, in cases where vehicles are insured, compensation to accident victims is paid by the insurance company providing the mandatory third-party cover. However, when accidents involve uninsured vehicles or hit-and-run cases, the government said payments are made through the Motor Vehicle Accident Fund....
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