Third party insurance for two, four-wheelers be made mandatory: Supreme Court 

The bench said that third-party insurance should be made mandatory for four wheelers for a period of three years and for two-wheelers, it should be done for five years. 

Published: 20th July 2018 09:38 PM  |   Last Updated: 20th July 2018 09:38 PM   |  A+A-

Supreme Court (File Photo| PTI)


NEW DELHI: The Supreme Court today said third party insurance of four-wheelers and two-wheelers be made "mandatory" so that victims of road accidents could get compensation and insurance firms should look into it from a "human point of view" and not from commercial point.

The apex court said this while referring to the recommendations of the Supreme Court Committee on Road Safety and observed that over one lakh people were dying in India every year in road accidents.

The committee, headed by former apex court judge Justice K S Radhakrishnan, has recommended that at the time of sale of two or four wheelers, third-party insurance should be made mandatory for a period of five and three years respectively instead of one year.

In its report, the committee has said that around 18 crore vehicles were plying on the roads of the country out of which only six crores have third party insurance, and victims of road accidents were not getting the compensation as vehicles do not have third party cover.

The panel also said they had detailed discussions with the Ministry of Road Transport and Highways (MoRTH), the Insurance Regulatory and Development Authority (IRDA) and the Department of Finance about it.

The bench said that third-party insurance should be made mandatory for four wheelers for a period of three years and for two-wheelers, it should be done for five years. 

"Third party insurance has to be mandatory," it said.

During the hearing, the counsel appearing for IRDA said that third-party insurance should not be made mandatory and the authority was also looking into the issue and they would take around eight months time to decide on it.

"You are looking at it from the point of insurance companies. Now, there are people who are dying and there are people who have already died in road accidents. Number of deaths in road accidents is more than one lakh per year in India. Three people are dying per minute in road accidents," the bench said.

"Look at it from human point of view and not from your commercial interest. Do it within a reasonable time of two-three weeks. Look at the people of India who are dying in road accidents. People are not getting money because of insurance companies are taking so much time. You do it within four weeks. You cannot take eight months," it said.

The apex court asked the IRDA to take a decision on the issue on or before September 1.

During the hearing, an advocate, assisting the court as an amicus curiae, referred to the report of the committee and said that third-party insurance should be made mandatory.

The apex court had in November last year issued a slew of directions on road safety and asked all states and union territories (UTs) to set up a trauma centre in each district of the country and make safety norms part of the school curriculum.

The court is hearing a petition filed by Coimbatore-based surgeon S Rajaseekaran which was treated as a PIL by the apex court.

The apex court had on April 22, 2014, constituted a committee on road safety which has submitted several reports in the court.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp