Supreme Court Mandates 4‐Year Third Party Insurance for All New Cars

The Supreme Court has laid down a new requirement for all new private cars to be sold with four years of mandatory third party car insurance, extending the earlier three‐year period set in 2018. The Court noted that a large number of vehicles still ply on roads without valid insurance, putting accident victims at greater risk and delaying compensation.

Third party car insurance covers injury, death, or property damage caused to another person, a protection mandated under the Motor Vehicles Act. The Court also stressed stricter enforcement and directed authorities to work on a system where vehicles without valid third party insurance would not be allowed to refuel, using real‐time verification to identify uninsured cars.

This change by the Supreme Court is aimed at improving compliance and ensuring stronger financial support for people affected by road accidents. However, buyers may face a higher upfront cost since the longer insurance duration has to be paid at the time of purchase.

Why Comprehensive Car Insurance Still Matters

While third party cover is mandatory, it does not protect your own car. A comprehensive car insurance policy shields your vehicle against accidents, theft, fire, and natural disasters, giving fuller protection alongside the 4‐year third‐party mandate.

Source: Moneycontrol