Supreme Court mandates 4-year cover for new cars, 6 years for two-wheelers

India’s Supreme Court has extended bundled mandatory third-party motor insurance for new vehicles to four years for cars and six years for two-wheelers. The directive raises compliance obligations for dealers and insurers, with real-time verification and action against uninsured vehicles under consideration.

— Filed Wed, 5 Aug, 2026, 18:19 IST · Source Business Today · Latest · Updated

India’s Supreme Court extended mandatory third-party insurance at vehicle purchase to four years for new cars and six for two-wheelers. The ruling affects auto retail, insurers and fuel outlets, and proposes real-time insurance checks and a fuel-denial pilot for uninsured vehicles.

Why this matters

The ruling follows recent Supreme Court signals seeking a pilot to deny fuel to uninsured vehicles and reiterating four-year car and six-year two-wheeler cover.

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