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Following Traffic Rules Can Help Avoid Heavy Penalties

When people say ‘rules are meant to be broken’, they mean one needs to think out of the box to come up with better results. If you literally break the rules, let's say in a race, you will get disqualified. Similarly, traffic rules also serve certain purposes like making our commute easier and our lives safer. However, one can witness blatant disregard for traffic rules on Indian roads and as a result, hundreds of lives are lost due to road rage and reckless driving. As a responsible citizen, we must all follow traffic rules. Another major advantage of doing is avoiding heavy fines.

Importance of Motor Insurance

Having MOTOR INSURANCE is not just mandatory but it is also necessary. As per the Indian Motor Vehicles Act, 1988, it is compulsory for vehicle owners to have a valid third-party insurance policy and non-compliance of this rule can lead to heavy penalties. The main objective of Motor Insurance is to give complete financial protection against any physical damage, bodily injuries to the driver and third party liability.

There are two types of insurance policys available - Liability Only Policy that covers bodily injury (or death) or property damages of any THIRD PARTY in case of an accident caused by the insured vehicle; and a comprehensive policy that includes damage to your own vehicle as well as that of the third-party. Apart from accidents, the latter also covers theft and damage to the vehicle due to any natural calamity or malicious act like riots, strikes, and terrorist activity among others. While the first policy is mandatory by law, opting for the second one is optional. The policy doesn’t work if the accident was a deliberate act or done under the influence of any drugs or alcohol or if the driver didn’t have a driving license.

Motor Vehicles (Amendment) Act

The Motor Vehicles (Amendment) Act was passed by Parliament last year and it came into effect from September 1, 2019. While some states accepted it totally and some partially, there were also some states that refused to implement it. Nonetheless, the amended act created a sense of responsibility among drivers and the traffic rules gained new-found respect as not obeying the traffic and road safety rules could now cost you a bomb. For example, for not wearing a helmet, the fine has increased from Rs 100 to Rs1,000, and a three-month disqualification of license and for not wearing a seatbelt, the penalty is now Rs1,000. For over speeding, the fine has increased from Rs 500 to Rs5,000 and for drunken driving from Rs 2,000 to Rs10,000. The fine for driving without a license was hiked to ₹5,000 from ₹500. Such a fine can easily disturb your monthly budget.

Driving Without Insurance and the Need to Get One Quickly

As per data (2017) by the Ministry of Road Transport and Highways, over 4.6 lakh accidents claimed 1.47 lakh lives. These statistics leave no doubt that valid motor insurance is a must so that the aggrieved parties in a road accident get proper treatment and compensation. Even without meeting an accident, not having mandated motor insurance can lead to a hefty penalty. As per the amended act, the fine for the first offence of driving without an insurance policy is Rs2,000 and/or imprisonment of up to 3 months. Earlier, it was Rs.1,000 and/or imprisonment of up to 3 months. If you are caught the second time, then you will be liable to pay a fine of Rs4,000 and/or imprisonment of up to 3 months. In case, your insurance has expired, do not wait to get challaned to renew your policy.

To make sure you avoid paying heavy fines, you should obey traffic rules, refrain from over speeding or jumping signals, and always wear a helmet and/or seatbelt. Always carry your license, RC, and pollution certificate in your vehicle and never miss the renewal of your insurance policy.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance.

Mr. Mukesh Kumar recommends "getting your two wheeler insured from HDFC ERGO, a brand serving more than 1 crore+ customers. With overnight repair services and more than 6,800+ network garages, you can be assured of help in event of any damage to your vehicle

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