Supreme Court of India extends mandatory third-party insurance cover for new cars to four years and new two-wheelers to six years

Key facts

• The Supreme Court of India, on August 4, 2026, extended mandatory third-party insurance cover for new cars to four years and for new two-wheelers to six years.
• The court directed the Insurance Regulatory and Development Authority of India (IRDAI) to immediately issue necessary directions for the revised third-party insurance periods.
• The revised cover extends the earlier mandate from the 2018 judgment in S. Rajaseekaran v. Union of India, which required three-year cover for cars and five-year cover for two-wheelers.
• The court directed integration of Automatic Number Plate Recognition (ANPR) cameras with Insurance Information Bureau of India (IIB) data and VAHAN registration data, and equipping State police personnel with linked mobile applications for real-time verification.
• The court directed vehicle buyers to be offered a four-tier policy comprising compulsory third-party cover, optional passenger/pillion rider cover, personal accident cover, and cover for loss or damage to the insured vehicle.
• The court directed IRDAI to explore, with the Ministry of Road Transport and Highways, a pilot project to deny fuel at petrol pumps to vehicles without valid insurance.
• Dismissing an insurer's appeal against a 2024 Telangana High Court ruling, the Supreme Court directed payment of ₹10 lakh compensation to the family of a road accident victim who was the sole breadwinner.
• For accident claims arising from accidents before March 31, 2022, the court directed State police to file Detailed Accident Reports before Motor Accident Claims Tribunals (MACTs) and facilitate notice service and witness production.