Cars on highways to be offered insurance cover using Fastag soon: Report

Centre may also come up with a plan to provide third-party insurance cover for motor vehicles when they are impounded by traffic police or transport department officials

The Centre is discussing a plan to change the way auto insurance is offered in India. According to a report in Mint, vehicles travelling on highways may be offered on-the-spot insurance cover using the Fastag account. Currently, 40-50 per cent of all vehicles in India are uninsured. 

Also, the Centre may also come up with a plan to provide third-party insurance coverage for motor vehicles when they are impounded by traffic police or transport department officials. Handheld devices and the Vahan app may also be used. 

"The hand-held devices with police and transport department officials would not only check for insurance