Section 146 of the Motor Vehicles Act, 1988 makes it mandatory for motor vehicles plying on Indian roads to have an insurance policy covering third party indemnity.
Driving license issued by the authorities is mandatory to drive your vehicle on the roads. This applies to cars, bikes and heavy vehicles.
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The driver of the vehicle has to pay compensation to the third party in case of damage to the third party’s vehicle. Perhaps if someone is injured or dies, compensation is also a huge support.
Every driver who drives a vehicle on the road must have a valid driving license.
Those who drive or permit an uninsured vehicle without valid motor third party insurance are subject to fines, including imprisonment, for breaking the law.
Such offenders shall be punished under Section 196 of the Motor Vehicles Act, 1988:
- For first time violation, the penalty is Rs. 2,000 or both
- 3 months imprisonment or fine of Rs. 4,000 or both shall be punished.
Vehicle owners should check the status of third party insurance of their motor vehicles and possibly buy/renew it.
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The above penalties will be imposed by the enforcement authorities on vehicles operating without valid motor third party insurance.