From April next year, you won’t be able to renew the third party insurance of your vehicle, except for two and three-wheelers, if it doesn’t have a valid FASTag. Moreover, all vehicles with four or more wheels would need to have FASTag from January 1, 2021and violation would attract a penalty of Rs.300-500.
The road transport ministry has published a draft notification proposing these changes in the Central Motor Vehicle Rules in order to increase penetration of FASTags. Though all cars and other bigger vehicles sold after December 1, 2017 have got FASTags since this was made mandatory for registration, a huge number of old vehicles don’t have the smart tags.
“The move will ensure greater coverage of FASTag used for paying toll charges digitally,” said a source. However, there are concerns whether insurance companies and the insurance regulator would find it possible to ensure that only vehicles with FASTags can renew the third party insurance. Currently, nearly 50% of the vehicles have this insurance coverage and the regulator has been trying to increase the coverage.