No FASTAG for your car? No third party insurance from 2021

After making pollution under control (PUC) mandatory to renew car insurance in India, the Ministry of Road Transport and Highways (MoRTH) has proposed a new rule. If the new rule comes into place, you will not be able to buy new third-party motor insurance for your vehicle. It is likely to come into effect from 1st April 2021.

That’s not all, the ministry is also planning to make FASTag mandatory for all four-wheelers in India that were sold before December 2021. Currently, all the new cars sold in India have to get mandatory FASTag from the dealership.

According to a statement released by the government,

Ministry of Road Transport and Highways has notified draft notification GSR 541 (E) dated 1st September 2020 to seek comments and suggestions from the stakeholders on making FASTag mandatory for old vehicles sold before 1st December 2017. The amended provision in CMVR, 1989 is proposed to be put in force w.e.f 1st Jan 2021. Further, it is proposed to make having a valid FASTag mandatory while getting a new 3rd party insurance (through an amendment in the certificate of Insurance), wherein the details of FASTag ID shall be captured. This is proposed to be put in force w.e.f. 1 April 2021.”

All the vehicles sold since 2017 in India has to get the FASTag for getting registration number. The new rules have also made the FASTag mandatory for renewal of fitness certificate for the Transport and commercial vehicles. Also, the rule says that the vehicles with National Permit Vehicles have to get the FASTag since October 2019.

It should be noted that FASTag are sold separately for every vehicle and you cannot interchange them with other cars. Also, you cannot buy a single FASTag for two different vehicles that you own.

FASTags were introduced in India as prepaid rechargeable tags for toll collection. The system makes the toll payment quicker by automatic payment deduction from the FASTag account. To increase the adoption of the FASTag, the government also had issued a notice that all the vehicles without FASTag will have to pay double the toll amount while vehicles with the tags will get a discount. It uses RFID technology and scanners installed in the toll booths reads the information in your FASTag account and deducts money accordingly. Currently, there are a few lanes reserved for vehicles all over India but in the coming times, vehicles with FASTag will be able to cross the toll plazas using any lane.