Uninsured cars may soon face a huge hike in penalty
ET Online August 03, 2025 07:40 PM
Synopsis

In a bid to enhance road safety, the Ministry of Road Transport is proposing significant amendments to the Motor Vehicles Act. The Centre plans to regulate speed limits for national highways, leaving state highways and local roads under state jurisdiction.

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In a significant move to clarify speed limits and improve road safety, the Ministry of Road Transport has proposed new amendments to the Motor Vehicles Act, The Times of India reported on August 3. These changes aim to establish a clear authority over speed limits, with the Centre responsible for national highways (NHs) and expressways, while states will manage speed limits for state highways and local roads, ToI's report (by Dipak K Dash) said.

Currently, there is a mismatch between the speed limits set by the Centre and those imposed by individual states. This inconsistency often leads to confusion among drivers, who may unknowingly breach state-imposed speed limits on highways that are supposed to follow national guidelines.

The proposed amendments aim to standardise these limits, which could help reduce penalties for drivers and curb corruption linked to enforcement practices.

In addition to speed limit changes, the ministry is taking a firm stance on uninsured vehicles. The proposed amendments suggest increasing penalties significantly. Currently, the fine for driving without insurance stands at Rs 2,000 for first-time offenders and Rs 4,000 for repeat offenders.

The new proposal will require uninsured drivers to pay three times the base insurance premium for first offences and five times for subsequent violations. This initiative is designed to tackle the rising issue of uninsured vehicles on Indian roads.

The draft amendments also include stricter regulations for the renewal of driving licences. A mandatory driving test will be required for individuals convicted of serious offences, such as overspeeding or driving under the influence.

Moreover, drivers aged 55 and above will be subject to a driving test at the time of licence renewal, ensuring that all drivers maintain a competent level of skill.

The ministry has circulated these proposed amendments to other government bodies for feedback before seeking Cabinet approval.
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