Motor Insurance

Motor Insurance to be Made Compulsory for Fitness Test

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From April 1st, uninsured vehicles will not be permitted for the fitness test. The transport department is making certain changes in its online operations to make sure the transaction isn’t finished unless the legitimate insurance information is entered. The RTA offices will have the access to the insurance details, as the data will be uploaded to the system.

Vehicle owners will have to present vehicle documents to get the fitness certificate. The officials would verify the documents first, and then will forward the application. The new system would allow the transaction to be completed only after the insurance details are entered. The details would be scanned and matched up with the data given by the insurers. When the details are matched up, only then the transaction would be completed. These transactions comprise permanent registration, fitness certificate, issuing of NOCs, transfer of ownership etc.

Under Section 194(2) (b) of the Motor Vehicle Act, vehicle owners who do not have motor insurance may face a penalty of Rs. 1,000. Instead of paying the fine, buying third-party insurance that starts from just Rs. 650 can be brought.

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