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NEw new delhi: As many as 44% of vehicles plying on amerindic roadstead ar uninsured, the authorities informed the Rajya Sabha on Wednesday, highlighting a major compliance gap in mandatory third-party insurance requirements under the Motor Vehicles Act.The figure is based on active vehicles listed in the VAHAN database as of March 6, 2026, considering the validity of their registration and fitness status, Union minister of road transport and highways Nitin Gadkari said.He was responding to a set of questions from BRS MP KR Suresh Reddy, who also asked how victim compensation is arranged in instances involving uninsured vehicles.Ideally, in cases where vehicles are insured, compensation to accident victims is paid by the insurance company providing the mandatory third-party cover. However, when accidents involve uninsured vehicles or hit-and-run cases, the government said payments are made through the Motor Vehicle Accident Fund.Referring to provisions under the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022, (amended in January 2026), Gadkari said there are two accounts.The first account is meant for accidents involving uninsured vehicles or hit-and-run cases and is primarily used to pay for treatment of accident victims. It is used to meet expenses related to implementation of the scheme framed under Section 162 of the Motor Vehicles Act, known as the PM RAHAT (Road Accident Victims’ Hospitalization and Assured Treatment) scheme. Under PM RAHAT, victims of road crashes can avail medical care worth up to ₹1.5 lakh during the first seven days after a crash in designated hospitals.The second is a dedicated hit-and-run compensation account. This account is used to provide fixed compensation to victims of hit-and-run accidents and other compensations.

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44% vehicles plying on Indian roads uninsured: Govt

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