It is Illegal to Drive Your Car without an Insurance Policy: Know Why

Driving without auto insurance is illegal as per the Motor Vehicles Act of 1988. All vehicles must have third-party liability insurance. It is now even more important to be aware of them to avoid paying expensive penalties as a result of the increase in challan amount after a 2019 amendment to the Motor Vehicle Act. It is safer and better to get insured by a good car insurance provider like Bajaj Allianz car insurance rather than driving without insurance on the roads.

In 2019, the Indian government amended the Motor Vehicle Act as part of a campaign to reduce the number of fatal road accidents and reckless driving in the country. If you own a car, you should be aware that it is mandatory to have insurance when driving in India. Driving with a lapsed policy can also lead to punishment. Please do a quick search online on how to renew your car insurance to avoid any problems.

What are the consequences of driving without insurance?

The purchase of automobile insurance is required by Indian law for all vehicle owners. If caught driving without car insurance, you can face the consequences of a fine of Rs. 2000 and/or a jail term.

One of the car insurance benefits is that you would not have to pay any fines or face a jail term for not having insurance. Bajaj Allianz car insurance offers both third-party liability cover and comprehensive coverage for you to choose from. *

What are the required things that every individual should be aware of?

The following are the mandatory items that every individual should be aware of:

  • Responsibility for third parties – Under the Motor Vehicles Act 1988, the Government of India requires every car be covered by at least third-party vehicle insurance coverage. Third-party liability insurance covers your legal liability for a third party’s passing away, disability, loss, or property damage. *
  • Legal difficulties – If caught driving an uninsured vehicle, the penalties or fines would be severe, and you could face a three-month jail sentence. Furthermore, the legal issues arising from an accident involving a third party may be unnecessary and difficult to resolve.

Financial losses caused by the unintentional causality of someone driving an uninsured vehicle or of a third party can be very problematic and upsetting. It could also lead to the suspension of your driver’s licence. *

  • Self-destructive behaviour – In the unfortunate event of a collision, your vehicle may sustain damage in addition to that of the third party. You would be required to pay for any damage to a third party or their property. You would also have to pay for any damage to your own vehicle and any medical expenses incurred due to any injuries. If you have comprehensive auto insurance, you will be covered for third-party and personal damage to your car. *
  • Car insurance claim rules – Be aware of the car insurance claim rules and regulations. There are certain rules to be followed, like avoiding drunk driving, making sure the policy has not lapsed, or the claim may not be passed. *

* Standard T&C Apply


While reckless driving is exciting, it can also be deadly. Every car owner in India must have car insurance. Still, it is also critical that we all drive safely, within the speed limit, and follow all other traffic regulations.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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