What happens if I don’t have a car, bike insurance and meet with an accident?

Srishti P
·2 min read

Driving a car or bike without having auto insurance is risky business. To curb this, the government has put hefty penalties for driving without insurance. The aim is not just to protect you if you meet with an accident while driving, but also to protect a victim if you cause an accident.

In law

As per the Motor Vehicles Act, 2019, getting caught without proper auto insurance for the first time will ensure you get penalised for INR 2,000. Subsequent offences attract a fine of INR 4,000 and/or a jail term of up to 3 months.


A bike owner in Thane was directed to pay INR 80,000 to a private vehicle’s passenger for damage via his insurance company. Not only did the car suffer bodily harm, but the person sustained massive injuries in the car when it was hit by the speeding bike. The Motor Accident Claims Tribunal ordered the bike owner’s insurance company to cover the damages, which the insurance company subsequently recovered from the bike owner’s insurance.

Here, if the bike owner did not possess insurance, he would be responsible for covering the damages in his individual capacity and paying hefty fines for not having proper insurance in place.

If you cause the accident

If you are the cause of an accident and do not possess car or bike insurance, then all the damages will need to be covered from your own pocket. Moreover, you can also get sued by the people the damages were caused to.

If you have valid insurance and have been the cause of an accident, then depending on your insurance plan, the insurance company will cover the cost of the damage to any vehicle or victims.

If someone causes you the accident

If you do not have insurance and are caused an accident by someone else, the recoveries you may be offered could be limited.

To prove that you are the victim and require the other person to assume financial responsibility towards you or your vehicle, you need to show insurance papers to prove you are protected. They caused damage, and they will cover your costs.


In a nutshell, get your car or bike insured to safeguard yourself in an accident, irrespective of whether you caused it or have been a victim. The results of not having auto insurance can be disastrous - both bodily and monetarily.

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