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Driving without insurance: fine amount and rules

The short answer

The fine for driving without insurance is First offence: imprisonment up to 3 months, or a fine of ₹2,000, or both for a first offence (Section 196 read with Section 146); a repeat offence costs Subsequent offence: imprisonment up to 3 months, or a fine of ₹4,000, or both. No automatic licence action. Section 196 is not among the offences listed in Section 206(4) for which the officer must seize the driving licence, and the section itself orders no disqualification.

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What does the law say about driving without insurance?

Section 146 makes it unlawful to use, or to cause or allow another person to use, a motor vehicle in a public place unless a policy of insurance complying with Chapter XI is in force in relation to that use. Section 196 punishes driving, or causing or allowing a vehicle to be driven, in contravention of Section 146. The 2019 amendment raised the fine from 'which may extend to one thousand rupees' to a flat two thousand rupees for the first offence and inserted a distinct four thousand rupee penalty for any subsequent offence.

"…punishable for the first offence with imprisonment which may extend to three months, or with fine of two thousand rupees, or with both, and for a subsequent offence shall be punishable with imprisonment for a term which may extend to three months, or with fine of four thousand rupees, or with both." — Section 196, Motor Vehicles Act 1988 (fine substituted and repeat-offence limb inserted by the Motor Vehicles (Amendment) Act 2019, w.e.f. 1-9-2019)

How much is the fine?

Amount
First offenceFirst offence: imprisonment up to 3 months, or a fine of ₹2,000, or both
Repeat offenceSubsequent offence: imprisonment up to 3 months, or a fine of ₹4,000, or both
Licence impactNo automatic licence action. Section 196 is not among the offences listed in Section 206(4) for which the officer must seize the driving licence, and the section itself orders no disqualification.
Payable onlineYes, on official e-challan portals

Which states charge different amounts?

StateAmount
Andhra Pradesh ₹2,035 for driving without an insurance certificate (s.196) — ₹35 above the ₹2,000 statutory figure.
Karnataka ₹1,000 for two- and three-wheelers, ₹2,000 for LMV and ₹4,000 for HGV and others under s.196; the central first-offence figure is ₹2,000.
Rajasthan ₹1,000 for a two-wheeler or three-wheeler and ₹2,000 for any other vehicle. Rajasthan notifies no separate higher figure for a repeat offence.

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Frequently asked questions

Is the owner or the driver fined when there is no insurance?

Either can be. Section 196 catches whoever 'drives a motor vehicle or causes or allows a motor vehicle to be driven' in contravention of Section 146, so the owner who lets the vehicle out uninsured is liable alongside the driver. The Explanation to Section 146(1) protects a person driving merely as a paid employee unless he knew or had reason to believe no policy was in force.

Does an expired policy count as no insurance?

Yes. Section 146 requires a policy that is 'in force' in relation to the use of the vehicle at that time. A lapsed or expired policy is not in force, so using the vehicle attracts Section 196 exactly as if no policy had ever been taken.

Is own-damage cover enough, or must it be third-party?

The statutory requirement is a policy complying with Chapter XI of the Act, which is third-party liability cover. Own-damage-only cover does not satisfy Section 146. A vehicle carrying dangerous or hazardous goods additionally needs a policy under the Public Liability Insurance Act 1991.

Sources

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