SC mandates four-year third-party cover for new cars, six years for two-wheelers

The Supreme Court’s revised compulsory insurance tenure raises upfront vehicle purchase costs and directs tighter uninsured-vehicle enforcement through insurance-data links with VAHAN, ANPR systems and potential fuel-sale checks.

— Filed Tue, 4 Aug, 2026, 20:54 IST · Source BL · Consumer & Economy · Updated

The Supreme Court mandated four-year third-party cover for new cars and six-year cover for two-wheelers, raising purchase costs at vehicle retail. It also ordered insurance-data integration with ANPR and VAHAN systems and proposed fuel-sale enforcement for uninsured vehicles.

Why this matters

The ruling follows a recent Supreme Court signal on longer third-party cover for new vehicles. Separately, the Court has sought the Centre's response on banning liquor sales in tetra packs and sachets.

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