Context: Nearly 57 per cent of the total vehicles on the road were uninsured as of March 2019, up from 54 per cent in March 2018, according to the Insurance Information Bureau of India's annual report released.

Insurance Information Bureau (IIB)

• It was established by the Insurance Regulatory and Development Authority of India (IRDAI) in 2009.
• It was registered as an independent society under the Andhra Pradesh Societies Registration Act on 21st November 2012.
• It act as single point for entire insurance industry data.

Key highlights of report:

• The bulk of uninsured vehicles are two-wheelers, with the numbers being as high as 66 per cent.
• There were 15 states which had uninsured vehicles to the extent of more than 60 per cent. In most cases, the renewals are not done after the first year.
• India is one of the largest auto markets in the world with over 20 million vehicles sold annually.
• It is also among the countries with the highest number of road accidents and fatalities. “
• According to the Motor Vehicles Act, 2019, it is mandatory for all vehicles to be insured with third-party vehicle insurance policy.
  • Third-party or liability insurance covers the legal liability arising due to death or disability of third party loss or damage to their property.
  • When an uninsured vehicle meets with an accident, the injured or relatives of dead people don’t get any compensation. There is no compensation for damaged vehicles.
• Interestingly, six states — Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, Gujarat and Delhi — contributed nearly 50 per cent of the total policies and claims.

https://indianexpress.com/article/india/over-50-vehicles-on-road-uninsured-report-7103787/

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