Section 196 of The Motor Vehicle Act in India

Driving uninsured vehicles is an offence under Section 196 of Motor Vehicle Act. The person found guilty of driving an uninsured vehicle can be punished with imprisonment of up to three months and/or penalty of ₹2000. A subsequent offence can lead to stricter punishment of imprisonment for 3 months or ₹4000 fine or both. This strict punishment regime is meant to act as a check against growing road mishaps in India and to ensure that people follow traffic rules. To avoid getting penalised, it is best to always keep your vehicle insured.

According to Section 196 of the new Motor Vehicles Act, driving an uninsured vehicle is a punishable offence, and thus attracts a penalty/imprisonment. The penalties under this section are as follows:

• If you are found guilty of the offence under Section 196, you will have to undergo imprisonment of up to three months and/or have to pay a penalty of ₹2,000 for the first offence.

• For a subsequent offence, you might be punished with imprisonment for three months or a ₹4,000 fine or both.

The new Motor Vehicles Act, 2019 has been introduced with harsher penalties to ensure that people follow the traffic rules strictly in a bid to bring down the rate of accidents in the country. Motor insurance is not only mandatory but also beneficial in dealing with third-party liabilities and unforeseen losses. So, instead of seeing it as an obligation, you must consider it to be a lucrative financial product that protects you against the uncertainties of owning a car/bike.