HOOK Logo
Business
Manglam Mishra

Unpaid traffic e-challans may lead to licence suspension and higher insurance

Unpaid traffic e-challans may lead to licence suspension and higher insurance
Amidst growing concerns over unpaid traffic fines, the Indian government is drafting stricter rules — including licence suspensions and insurance penalties — to crack down on repeat offenders.
00:00
/
00:00
1/9

Ignoring traffic fines in India could soon lead to serious consequences! According to a Times of India report, new draft rules propose strict measures to improve e-challan recovery and deter traffic violations.

What's Changing?

The Indian government is cracking down on unpaid traffic e-challans. Here's a breakdown of the proposed changes:

Licence Suspension: Fail to pay your traffic e-challan within three months, and you risk having your driving licence suspended.

Licence Confiscation: Accumulate three challans in a financial year for offenses like jumping red lights or dangerous driving, and your licence could be confiscated for a minimum of three months.

Higher Insurance Premiums: Get ready to pay more for your car insurance. The government plans to link higher insurance premiums to drivers with at least two pending challans from the previous financial year.

Why the Crackdown?

The government's move comes in response to alarmingly low e-challan recovery rates. Currently, only about 40% of e-challans amounts are recovered. This new strategy aims to improve compliance and ensure safer roads.

The initiative follows a Supreme Court order that directs states and Union Territories to file compliance reports indicating the implementation of electronic monitoring as provided in the Central Motor Vehicles Act. This act focuses on using technology like speed cameras, CCTV cameras, and automatic number plate recognition systems to better manage traffic and enforce traffic laws.

Worst Recovery Rates

Some major states and UTs are struggling more than others when it comes to recovering traffic fines. Delhi has the lowest recovery rate at just 14%, followed by Karnataka (21%), Tamil Nadu and Uttar Pradesh (27% each), and Odisha (29%). In contrast, states like Rajasthan, Bihar, Madhya Pradesh, Maharashtra, and Haryana have recovery rates between 62% and 76%.

Why Aren't People Paying?

Several factors contribute to the low e-challan recovery rates. Common issues include late challan alerts, where drivers often receive delayed notifications about their fines. Faulty challans, with errors in the challan itself also deter people from paying.

To address these issues, the government plans to introduce a standard operating procedure that includes minimum specifications for cameras and ensures that vehicle owners receive repeated monthly alerts about pending challans until the payment is made.

Logo
Download App
Play Store BadgeApp Store Badge
About UsContact UsTerms of UsePrivacy PolicyCopyright © Editorji Technologies Pvt. Ltd. 2025. All Rights Reserved