Driving without insurance: fine amount and rules
Last verified: 12 Aug 2026
What the law says
Section 146 makes it unlawful to use, or to cause or allow another person to use, a motor vehicle in a public place unless a policy of insurance complying with Chapter XI is in force in relation to that use. Section 196 punishes driving, or causing or allowing a vehicle to be driven, in contravention of Section 146. The 2019 amendment raised the fine from 'which may extend to one thousand rupees' to a flat two thousand rupees for the first offence and inserted a distinct four thousand rupee penalty for any subsequent offence.
Fine amounts
| Amount | |
|---|---|
| First offence | First offence: imprisonment up to 3 months, or a fine of ₹2,000, or both |
| Repeat offence | Subsequent offence: imprisonment up to 3 months, or a fine of ₹4,000, or both |
| Licence impact | No automatic licence action. Section 196 is not among the offences listed in Section 206(4) for which the officer must seize the driving licence, and the section itself orders no disqualification. |
| Payable online | Yes, on official e-challan portals |
States with different notified amounts
| State | Amount |
|---|---|
| Andhra Pradesh | ₹2,035 for driving without an insurance certificate (s.196) — ₹35 above the ₹2,000 statutory figure. |
| Karnataka | ₹1,000 for two- and three-wheelers, ₹2,000 for LMV and ₹4,000 for HGV and others under s.196; the central first-offence figure is ₹2,000. |
| Rajasthan | ₹1,000 for a two-wheeler or three-wheeler and ₹2,000 for any other vehicle. Rajasthan notifies no separate higher figure for a repeat offence. |
Related
Frequently asked questions
Is the owner or the driver fined when there is no insurance?
Either can be. Section 196 catches whoever 'drives a motor vehicle or causes or allows a motor vehicle to be driven' in contravention of Section 146, so the owner who lets the vehicle out uninsured is liable alongside the driver. The Explanation to Section 146(1) protects a person driving merely as a paid employee unless he knew or had reason to believe no policy was in force.
Does an expired policy count as no insurance?
Yes. Section 146 requires a policy that is 'in force' in relation to the use of the vehicle at that time. A lapsed or expired policy is not in force, so using the vehicle attracts Section 196 exactly as if no policy had ever been taken.
Is own-damage cover enough, or must it be third-party?
The statutory requirement is a policy complying with Chapter XI of the Act, which is third-party liability cover. Own-damage-only cover does not satisfy Section 146. A vehicle carrying dangerous or hazardous goods additionally needs a policy under the Public Liability Insurance Act 1991.
Sources
- www.indiacode.nic.in — https://www.indiacode.nic.in/show-data?actid=AC_CEN_30_42_00009_198859_1517807326286§ionId=28473§ionno=196&orderno=224
- www.indiacode.nic.in — https://www.indiacode.nic.in/show-data?actid=AC_CEN_30_42_00009_198859_1517807326286§ionId=28419§ionno=146&orderno=158
- www.indiacode.nic.in — https://www.indiacode.nic.in/show-data?actid=AC_CEN_30_42_00009_198859_1517807326286§ionId=28477§ionno=200&orderno=231
- www.indiacode.nic.in — https://www.indiacode.nic.in/show-data?actid=AC_CEN_30_42_00009_198859_1517807326286§ionId=28483§ionno=206&orderno=237
- traffic.delhipolice.gov.in — https://traffic.delhipolice.gov.in/traffic-offences
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