The General Insurance Corporation of India (GIC) is planning to join hands with regional transport offices (RTOs) to track uninsured vehicles.
The pilot project is expected to be launched in two states. Based on the success of the projects, it will be extended to other parts of the country, according to S L Mohan, secretary general, GIC.
According to Mohan, 70 per cent of the two-wheelers and 40 per cent of the four-wheelers in the country are uninsured. In India, every month around 400,000 two-wheelers are produced.
“It is not the new insurance policy which GIC is worried about. The issue is renewal,” said Mohan. GIC has prepared a concept paper in this regard, which will seek approval from a forum, comprising chairmen of the country’s 21 general insurance companies, in the next two weeks.
The states where the pilot project will be launched and how it will be funded will be decided in the meeting,” he added. While welcoming GIC’s initiative, a senior industry representative from a public sector company, said that one out of every three vehicles on Indian roads does not have the mandatory third-party liability insurance, let alone personal cover.
Whoever drives a motor vehicle or causes or allows a motor vehicle to be driven in contravention of the provisions of Section 146 shall be punishable with imprisonment which may extend to three months, or fine which may extend to Rs 1,000, or with both.
