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FASTag mandatory for third party insurance, vehicles sold before December 2017

Ministry of Road Trasport & Highways has made FASTag mandatory for availing third party vehicle insurance effective from April 1, 2021

twitter-logoBusinessToday.In | November 7, 2020 | Updated 21:35 IST
FASTag mandatory for third party insurance, vehicles sold before December 2017
Now FASTag mandatory for cars sold before December 1, 2017

The central government on Saturday issued a notification making FASTag mandatory in four-wheelers, or M and N category of vehicles, that were sold before December 1, 2017. Fitness certificate will be renewed only after the fitment of FASTag for vehicles, Ministry of Road Trasport & Highways said in a notification on Saturday.

The ministry has also made FASTag mandatory for availing third party vehicle insurance effective from April 1, 2021.

FASTag, an initiative introduced by the National Highway Authority of India (NHAI) in association with National Payments Corporation of India (NPCI), has been introduced to prevent queues of vehicles at toll plazas. It employs RFID technology to make toll payments directly from prepaid or savings accounts linked to it.

"The government has issued a notification making FASTag mandatory to be available by 1st of January 2021 in old vehicles also i.e. M and N category of motor vehicles (four wheelers) sold before 1st December, 2017 through amendments in CMVR, 1989," Ministry of Road Trasport & Highways notified on Saturday.

Also Read: Centre proposes to make FASTags mandatory for third party vehicle insurance

As per Central Motor Vehicles Rules (CMVR), 1989, since December 1, 2017, the FASTag had been made mandatory for registration of new four-wheelers and is being supplied by the vehicle manufacturer or their dealers. For national permit vehicles, the fitment of FASTag has been mandated since October1, 2019.

"It has been further mandated that a valid FASTag is mandatory while getting a new third party insurance through an amendment in Form 51 (certificate of insurance), wherein the details of FASTag ID shall be captured. This shall be applicable w.e.f. 1 April 2021," the notification said.

Also Read: Which banks sell FASTags and how to recharge? All you need to know

The ministry said that the decision would be a major step for ensuring that the payment of fees be 100 per cent at toll plazas through the electronic means only and that the vehicles pass seamlessly. There would be no waiting time at the plazas and would save fuel, it added.

"The steps for ensuring the availablity of FASTag at multiple channels are being made through physical locations and also through online mechanism so that the citizens are able to have them affixed at their vehicles within the next two months at their convenience," it said.

Recently, the government made the use of radio-frequency identification device (RFID) FASTag mandatory for availing any discount or any other exemptions in toll charges, including return journey within 24 hours.

By Chitranjan Kumar

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