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Centre Proposes Stricter Penalties for Uninsured Cars

Published on August 6, 2025. EST READ TIME: 2 minutes

Centre Proposes Stricter Penalties for Uninsured Cars

The Ministry of Road Transport has proposed significant amendments to the penalties imposed for riding uninsured cars. The current fine for driving without insurance is ₹2,000 for a first-time offence and ₹4,000 for repeat offences. As per the latest recommendations, offenders will be liable to pay three times the base insurance premium for the first violation. In case of a second offence, five times the base insurance premium will be charged as a fine.

The ministry has circulated the draft with other government bodies for feedback before seeking cabinet approval. The centre has also proposed to implement a timeline for state governments to adapt to these amendments.

Other Recommendations in the Draft

The new draft also proposes the following amendments:

• The centre will set the speed limits for National Highways and Expressways, while the state will set speed limits for state highways and other roads.

• Stricter terms for the renewal of a driving licence. People aged 55 and above will have to undergo a compulsory driving test at the time of licence renewal.

• A mandatory driving test for offenders of overspeeding and drunk driving.

Source: Economic Times Auto

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