Worried about having your uninsured vehicles impounded by traffic police? Now ponder on whether this will cost you on-the-spot insurance. As per a Live Mint report, the government is planning to give on-the-spot insurance to vehicles on highways, with plans to deduct the premium from the owner’s FASTag account. To address the issue of the rising number of uninsured vehicles on the road, the Indian government is working out how to provide mandatory third-party insurance that covers medical and treatment expenses for accident victims. As per Mint’s sources, police and transport department officials will use the government’s Vahan app to check people’s insurance status. Further, insurance companies could be brought to the FASTag platform along with banks to deduct premiums from the FASTag balance for instant payment. Why it matters: The word mandatory should catch your attention here. The government says anyone whose vehicle gets impounded, will have to get insurance on the spot and have the premium deducted from their FASTag account. So, can owners refuse to pay premiums if they don’t want to? How does consent work here? The government talks about using this proposal to ensure road safety but the plan's execution may raise more issues than resolving them. How much premium can be paid? As per Mint’s report, the size of premiums for third-party insurance depends on the size and age of the vehicles. The amount can range “from ₹2,072 for 1000cc-passenger vehicles to ₹3,221 for 1000-1500cc vehicles and ₹7,890 for vehicles with above 1,500cc engines.”…
