After the new Motor Vehicles Act came into effect on September 1, motor insurance policies are selling like hot cakes. Given that about 60 per cent of the vehicles on Indian roads are uninsured, despite it being mandatory to buy thirdparty motor insurance, the new Act is bringing the right change.
The Act has increased penalties for errors related to driving. Besides, it has made driving an uninsured vehicle a costly mistake – the penalty has increased from 1,000 to 2,000 and/or imprisonment up to 3 months for the first offence, and a fine of 4,000 and/or imprisonment up to 3 months for the second offence.
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September 10, 2019