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The Supreme Court today directed the central government to develop a pilot project linking fuel sales to valid third-party motor insurance, proposing that uninsured vehicles be denied fuel at petrol pumps until coverage is obtained. A bench of Justices Sanjay Karol and Prashant Kumar Mishra said nearly 56 percent of vehicles on Indian roads are uninsured and called the situation shocking.
 
The court directed the Insurance Regulatory and Development Authority of India and the Centre to pilot Automatic Number Plate Recognition,ANPR-based insurance verification to identify uninsured vehicles and improve compliance with the Motor Vehicles Act.
 
The bench also directed the Centre to launch pilot projects on selected national highway corridors to replace conventional toll plazas with automatic vehicle detection systems, aiming to reduce congestion and improve traffic flow.

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