Have Uninsured Car? Here Is A Big Setback For Owners

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The Supreme Court Thursday directed all states to frame rules to allow selling of uninsured vehicles involved in accidents to pay compensation to the victims. The prevalent rules do not allow the selling of the uninsured vehicles making it difficult to pay the compensation for the victims.

The top court directed that the rules should be framed within 12 weeks by all the states in accordance with those currently in force in Delhi.

If the rules currently existing in Delhi are enforced across the country, then it would make driving of uninsured vehicle difficult as owners would run the risk of seizure of the vehicle in case of an accident and be sold to pay the compensation for the victim.

Seven states — Jammu and Kashmir, Chattisgarh, Bihar, Punjab, Jharkhand, Puducherry and Lakshadweep — told the apex court that they have initiated the process of incorporating such rules.

A bench of Chief Justice Dipak Misra and Justice D Y Chandrachud said that the magistrate having jurisdiction over the area in which accident takes place will not release the uninsured vehicle to the owner, and instead auction it and deposit the money with the Motor Vehicle Claims Tribunal (MACT) within 15 days.

It said that the amount realised after the sale of the vehicle shall be released by MACT to the victim while awarding the compensation.


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