Vehicle insurance to be made mandatory for transactions

Vehicle insurance to be made mandatory for transactions
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Highlights

Vehicles without having insurance will not be allowed to undergo fitness test with effect from April 1. The Transport Department is effecting changes in the online process to ensure that transactions are completed only if valid insurance details are entered. 

Hyderabad: Vehicles without having insurance will not be allowed to undergo fitness test with effect from April 1. The Transport Department is effecting changes in the online process to ensure that transactions are completed only if valid insurance details are entered.

According to a senior official in the department, all the RTA offices in the State would now have the data of the insurance companies who have submitted the details like class of vehicle, insurance premium to be paid and other information as the department has included the data into the online system.

According to officials owners of the vehicles have to present physical documents to the RTA office for fitness certificate and then the officials later would verify the papers before forwarding the application. At times lenience of the staff would be cashed by the owners in completing the transaction without proper insurance and PUC certificates.

With the introduction of the new system the transaction cannot be completed without entering the insurance details. The details would be matched with the data given by the insurance companies instantaneously and the transaction would then be completed, said the official. Generally the transactions at the RTA offices include fitness certificate, permanent registration, transfer of ownership, issuing of NOCs etc.

As per the law, the vehicle owners who do not have insurance certificate can be penalised with Rs 1,000 fine amount under Section 194(2) (b) of the Motor Vehicle Act. The official said that instead of paying penalty, vehicle owners can at least get a third party insurance certificate by bearing Rs 650 to Rs 4,000 based on the class and model of the vehicle. 

“We are in the process of incorporating the data in to the RTA systems and most of the work is complete. The data incorporation is necessary with the introduction of M-Wallet brought out by the department for maintaining digital record of the vehicle documents.

The same data is also been given to the police officials,” said B Venkateshwarlu, Joint Transport Commissioner. Welcoming the new system, Auto and Motors Welfare Association General Secretary M Dayanand said that it was a good move by the department and that this system would curb the corruption in the department.

By K Chandrashekar

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