Why is third-party motor insurance compulsory?

Section 146 of the Motor Vehicles Act, 1988 generally prohibits use of a motor vehicle in a public place unless a policy of insurance complying with Chapter XI is in force. Vehicles carrying or meant to carry dangerous or hazardous goods are also subject to the additional statutory insurance requirement referred to in the proviso to section 146.

What happens to an insured person's rights against the insurer on insolvency or winding up?

Section 151 provides, in the circumstances stated there, for transfer and vesting of the insured person's rights against the insurer in the third party to whom liability was incurred. The section protects third-party rights where the insured becomes insolvent or, in the case of a company, enters specified winding-up or receivership situations.

Can an insurer settle a third-party claim without the third party?

Section 153 provides that a settlement by an insurer in respect of a claim that may be made by a third party for liability of the kind covered by section 147(1)(b) is not valid unless the third party is a party to the settlement.

Can a motor insurance policy be transferred with the vehicle?

Yes. Section 157 deals with transfer of the certificate of insurance and policy when ownership of the motor vehicle is transferred. The statutory deemed transfer and the prescribed procedure should be read with the policy terms and applicable rules.

Which documents may a driver be required to produce?

Section 158 permits an authorised police officer to require production of specified documents, including the certificate of insurance, registration certificate, pollution-under-control certificate, driving licence and, for transport vehicles, fitness certificate and permit. Electronic production is also governed by applicable rules and the Parivahan/DigiLocker framework.

What is the police duty regarding an accident information report?

Section 159 requires the police officer, during investigation, to prepare an accident information report in the prescribed form and manner and submit it within three months to the Claims Tribunal and other prescribed agencies. MoRTH has also directed compliance with the detailed accident-report framework under the Central Motor Vehicles Rules.

Can a claimant obtain particulars of the vehicle involved in an accident?

Yes. Section 160 requires the registering authority or officer in charge of a police station, on request and payment of the prescribed fee, to furnish available particulars of the vehicle, the person using it, injured persons and damaged property in the prescribed form and time.

What compensation is payable for a hit-and-run motor accident?

Under section 161 and the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, the fixed compensation is ₹2,00,000 for death and ₹50,000 for grievous hurt, subject to the Act and the Scheme. A 'hit and run motor accident' is one where the identity of the vehicle cannot be ascertained despite reasonable efforts.

What is the fixed no-fault compensation under section 164?

Section 164 provides fixed compensation of ₹5,00,000 in case of death and ₹2,50,000 in case of grievous hurt arising out of use of a motor vehicle. For a claim under this section, the claimant is not required to plead or establish wrongful act, neglect or default.

What is the Motor Vehicle Accident Fund?

Section 164B provides for the Motor Vehicle Accident Fund. The statutory framework supports compulsory insurance-related compensation, treatment of road-accident victims and hit-and-run compensation in accordance with the Act, rules and notified schemes.

What is the punishment for unlawful alteration or sale of a non-compliant vehicle?

Section 182A provides penalties for manufacturers, importers and dealers who sell, deliver, alter or offer to sell, deliver or alter vehicles in contravention of Chapter VII or rules and regulations. For the principal offence under section 182A(1), punishment may extend to one year, or fine of ₹1,00,000 per vehicle, or both.

What is the punishment for failure to comply with accident-related duties?

Section 187 punishes failure to comply with specified duties under sections 132, 133 and 134. For a first offence, imprisonment may extend to six months, or fine of ₹5,000, or both; for a subsequent offence, imprisonment may extend to one year, or fine of ₹10,000, or both.

What is the general penalty for violation of road regulations?

Section 177A provides a fine of ₹500 for contravention of regulations made under section 118. Other traffic violations may attract specific penalties under sections 177 to 210B, and State notifications can affect the amount payable where the Act permits.

What is the penalty for violation of aggregator licensing conditions?

Section 193 governs agents, canvassers and aggregators. Contravention of licence conditions by an aggregator may attract the statutory penalty prescribed in section 193; the exact liability depends on the nature of the contravention and applicable Central or State rules.

What is the penalty for carrying excess passengers in a transport vehicle?

Section 194A provides a fine of ₹200 per excess passenger. The vehicle is not to be allowed to move until excess passengers are off-loaded and alternative transport is arranged.

Updated: 1 September 2026

Motor Vehicles Act: Traffic Offences, eChallan, Insurance, Accident Compensation and MACT Appeals

This guide explains third-party insurance, accident reporting, hit-and-run compensation, important traffic penalties, juvenile offences, eChallan procedure, road-accident criminal liability, Motor Accident Claims Tribunal jurisdiction, MACT appeals and future-prospect calculations.

Important 2026 criminal-law update: For incidents after 1 July 2024, the Bharatiya Nyaya Sanhita, 2023 has replaced the IPC for new offences. Section 106(1) BNS on causing death by negligence is in force. However, section 106(2), which specifically addresses rash and negligent driving followed by escape without promptly reporting to police or a Magistrate, has not been brought into force as of 1 September 2026.

Motor Vehicles Act: 32 Updated Questions and Answers

S.No.	Legal Term / Question	Updated Answer
1	Why is third-party motor insurance compulsory?	Section 146 of the Motor Vehicles Act, 1988 generally prohibits use of a motor vehicle in a public place unless a policy of insurance complying with Chapter XI is in force. Vehicles carrying or meant to carry dangerous or hazardous goods are also subject to the additional statutory insurance requirement referred to in the proviso to section 146.
2	What happens to an insured person's rights against the insurer on insolvency or winding up?	Section 151 provides, in the circumstances stated there, for transfer and vesting of the insured person's rights against the insurer in the third party to whom liability was incurred. The section protects third-party rights where the insured becomes insolvent or, in the case of a company, enters specified winding-up or receivership situations.
3	Can an insurer settle a third-party claim without the third party?	Section 153 provides that a settlement by an insurer in respect of a claim that may be made by a third party for liability of the kind covered by section 147(1)(b) is not valid unless the third party is a party to the settlement.
4	Can a motor insurance policy be transferred with the vehicle?	Yes. Section 157 deals with transfer of the certificate of insurance and policy when ownership of the motor vehicle is transferred. The statutory deemed transfer and the prescribed procedure should be read with the policy terms and applicable rules.
5	Which documents may a driver be required to produce?	Section 158 permits an authorised police officer to require production of specified documents, including the certificate of insurance, registration certificate, pollution-under-control certificate, driving licence and, for transport vehicles, fitness certificate and permit. Electronic production is also governed by applicable rules and the Parivahan/DigiLocker framework.
6	What is the police duty regarding an accident information report?	Section 159 requires the police officer, during investigation, to prepare an accident information report in the prescribed form and manner and submit it within three months to the Claims Tribunal and other prescribed agencies. MoRTH has also directed compliance with the detailed accident-report framework under the Central Motor Vehicles Rules.
7	Can a claimant obtain particulars of the vehicle involved in an accident?	Yes. Section 160 requires the registering authority or officer in charge of a police station, on request and payment of the prescribed fee, to furnish available particulars of the vehicle, the person using it, injured persons and damaged property in the prescribed form and time.
8	What compensation is payable for a hit-and-run motor accident?	Under section 161 and the Compensation to Victims of Hit and Run Motor Accidents Scheme, 2022, the fixed compensation is ₹2,00,000 for death and ₹50,000 for grievous hurt, subject to the Act and the Scheme. A 'hit and run motor accident' is one where the identity of the vehicle cannot be ascertained despite reasonable efforts.
9	What is the fixed no-fault compensation under section 164?	Section 164 provides fixed compensation of ₹5,00,000 in case of death and ₹2,50,000 in case of grievous hurt arising out of use of a motor vehicle. For a claim under this section, the claimant is not required to plead or establish wrongful act, neglect or default.
10	What is the Motor Vehicle Accident Fund?	Section 164B provides for the Motor Vehicle Accident Fund. The statutory framework supports compulsory insurance-related compensation, treatment of road-accident victims and hit-and-run compensation in accordance with the Act, rules and notified schemes.
11	What is the punishment for unlawful alteration or sale of a non-compliant vehicle?	Section 182A provides penalties for manufacturers, importers and dealers who sell, deliver, alter or offer to sell, deliver or alter vehicles in contravention of Chapter VII or rules and regulations. For the principal offence under section 182A(1), punishment may extend to one year, or fine of ₹1,00,000 per vehicle, or both.
12	What is the punishment for failure to comply with accident-related duties?	Section 187 punishes failure to comply with specified duties under sections 132, 133 and 134. For a first offence, imprisonment may extend to six months, or fine of ₹5,000, or both; for a subsequent offence, imprisonment may extend to one year, or fine of ₹10,000, or both.
13	What is the general penalty for violation of road regulations?	Section 177A provides a fine of ₹500 for contravention of regulations made under section 118. Other traffic violations may attract specific penalties under sections 177 to 210B, and State notifications can affect the amount payable where the Act permits.
14	What is the penalty for violation of aggregator licensing conditions?	Section 193 governs agents, canvassers and aggregators. Contravention of licence conditions by an aggregator may attract the statutory penalty prescribed in section 193; the exact liability depends on the nature of the contravention and applicable Central or State rules.
15	What is the penalty for carrying excess passengers in a transport vehicle?	Section 194A provides a fine of ₹200 per excess passenger. The vehicle is not to be allowed to move until excess passengers are off-loaded and alternative transport is arranged.
16	What is the penalty for failing to give way to an emergency vehicle?	Section 194E provides imprisonment up to six months, or a fine of ₹10,000, or both, for failure to draw to the side and allow free passage to a fire service vehicle, ambulance or other emergency vehicle specified by the State Government.
17	What happens when a juvenile commits an offence under the Motor Vehicles Act?	Section 199A creates special liability where an offence is committed by a juvenile. Subject to the statutory defence, the guardian or owner is deemed guilty and may face the penalty prescribed by the section; the vehicle's registration and the juvenile's eligibility to obtain a driving licence may also be affected. The provision should be applied with the Juvenile Justice law where relevant.
18	Can police impound driving documents?	Yes. Section 206 authorises a police officer or other authorised person to impound documents in the circumstances stated in that section. Licence suspension or disqualification is governed by the relevant offence provisions and statutory procedure; it is not automatic for every challan.
19	What is the consequence when an offence is committed by an enforcing authority?	Section 210B provides that an enforcing authority who commits an offence under the Act is liable to twice the penalty corresponding to that offence, subject to the terms of the section.
20	Can traffic offences be compounded?	Section 200 permits specified offences to be compounded by such officers or authorities and for such amounts as the appropriate Government may notify. Not every offence is compoundable, and the amount may differ by State or Union Territory.
21	What happens if an eChallan is not compounded or is contested?	If the alleged offence is not compounded, the matter may proceed before the competent court or Virtual Court, depending on the State, offence and digital enforcement system. The accused can contest liability and seek adjudication instead of simply paying the challan.
22	How can an uncontested traffic challan be paid?	Where online payment or compounding is available, payment should be made only through the authorised State portal, the official MoRTH eChallan service or Virtual Court, as applicable. A challan already paid on one authorised platform should not be paid again on another.
23	What happens when a person contests a traffic challan?	The matter may be placed before the competent court for adjudication. The prosecution must establish the offence according to law, while the accused may raise available factual and legal defences and produce relevant documents or electronic records.
24	Is bail always necessary in a traffic case?	No. Whether bail is required depends on the offence, its classification and the stage of proceedings. Many routine compoundable traffic violations are dealt with by payment or summary adjudication, while more serious offences may require appearance before a court and, where legally necessary, bail.
25	What should a driver do immediately after a motor accident?	Stop safely, protect life, arrange or facilitate medical assistance, inform the police where required, exchange or provide vehicle and insurance particulars, preserve evidence, and comply with sections 132, 133 and 134 of the Motor Vehicles Act. Leaving without complying with statutory duties can create separate liability.
26	Which criminal-law provision may apply when negligent driving causes death after 1 July 2024?	For post-1 July 2024 incidents, section 106(1) of the Bharatiya Nyaya Sanhita, 2023 may apply where death is caused by a rash or negligent act not amounting to culpable homicide. It provides imprisonment up to five years and fine. The separate section 106(2) provision concerning rash and negligent driving followed by escape without reporting has not been brought into force as of 1 September 2026.
27	Are all road-accident offences bailable?	No. The answer depends on the exact offence invoked under the Motor Vehicles Act, BNS or another law and on the applicable schedule/classification. It is therefore unsafe to state that every road-accident offence is bailable.
28	Should a driver wait at the accident spot in every situation?	A driver should not evade legal duties. However, personal safety is also important. If there is a genuine threat of mob violence, the driver should move to a safe place such as the nearest police station and report the accident immediately, while arranging emergency assistance and preserving evidence as far as possible.
29	What are the consequences of fleeing an accident scene?	Leaving without complying with statutory duties may attract section 187 of the Motor Vehicles Act and can adversely affect the factual assessment of the incident. For post-1 July 2024 cases, section 106(1) BNS may apply to negligent death where its ingredients are established. Section 106(2) BNS remains uncommenced as of 1 September 2026.
30	What is the time limit for an appeal against a Motor Accident Claims Tribunal award?	Section 173 permits a person aggrieved by a Claims Tribunal award to appeal to the High Court within 90 days from the date of the award. The High Court may entertain a delayed appeal on sufficient cause. A person required to pay an amount under the award must comply with the statutory pre-deposit requirement before the appeal is entertained.
31	Which Claims Tribunal can hear a motor accident compensation claim?	Section 166 permits an application to the Motor Accident Claims Tribunal having jurisdiction over the area where the accident occurred, where the claimant resides or carries on business, or where the defendant resides, subject to the Act and applicable rules. Under section 166(4), the accident information report forwarded under section 159 may also be treated as an application for compensation.
32	What are the Supreme Court guidelines on future prospects in fatal motor accident claims?	In National Insurance Co. Ltd. v. Pranay Sethi, a Constitution Bench standardised additions for future prospects. Broadly, for a deceased with a permanent job, the addition is 50% below age 40, 30% for age 40-50 and 15% for age 50-60. For self-employed or fixed-salary persons, the corresponding additions are 40%, 25% and 10%. The calculation must be read with later binding decisions on multiplier, conventional heads, dependency and the facts of each claim.

Important traffic penalties under the Central Act

Common statutory penalties include ₹200 per excess passenger under section 194A; ₹1,000 for specified seat-belt, child-restraint, motorcycle safety and helmet violations under sections 194B-194D; up to six months' imprisonment or ₹10,000 fine or both for failure to allow passage to an emergency vehicle under section 194E; and ₹2,000 for a first uninsured-driving offence under section 196. State or Union Territory notifications and compounding orders should always be checked because the payable amount and enforcement process can vary.

Hit-and-run compensation and accident claims

The 2022 Central scheme provides ₹2 lakh for death and ₹50,000 for grievous hurt in a qualifying hit-and-run motor accident. Separately, section 164 provides fixed no-fault compensation of ₹5 lakh for death and ₹2.5 lakh for grievous hurt. Ordinary compensation claims are adjudicated by Motor Accident Claims Tribunals under Chapter XII, and police accident information reports play an increasingly important role under sections 159 and 166(4).

Official legal and service links

Use the Motor Vehicles Act, 1988 - India Code for the statutory text; the MoRTH eChallan portal to check or pay eligible challans; the Ministry of Road Transport and Highways for rules, notifications and schemes; and the Ministry of Home Affairs - New Criminal Laws for the BNS and commencement material.

Disclaimer: This page provides general legal information. Traffic fines may vary under State or Union Territory notifications, and criminal or compensation liability depends on the facts, date of incident, evidence, applicable rules and binding judicial decisions.