The Indian government has implemented FASTag, which follows the trend toward the widespread adoption of digitised payment methods, to make your travels on India’s highways easier and more convenient. Since 2021, the National Highway Authority of India has required that Fastag is a must for and with 4 wheeler insurance.
What is FASTag?
The FASTag is a sticker that may be read for data collecting because it has an RFID chip also known as radio frequency identification. The data acquired includes specifics on the car, and the account associated with the FASTag is linked with the bank that issued the tag.
With the help of a FASTag reader, an RFID tag may scan the vehicle and date. The server at the toll plaza may call the issuing bank, and the bank would pay the toll collector. The plaza reopens after the toll collector receives the money and issues the toll payment acknowledgement. It takes minimal time to complete this activity.
It reduces the time and money spent at the toll plaza. This decision was made so that all toll plaza costs are paid electronically and vehicles can pass through easily.
Getting your car insurance renewal done can also be a matter of a few minutes if you do it online.
Is having a FASTag necessary when getting third-party insurance?
The Ministry of Road Transport and Highways issued a press statement in September 2020 announcing that a valid FASTag would be necessary for everyone who wants to obtain new third–party 4 wheeler insurance coverage. According to the Central Motor Vehicles Rules (CMVR), in 1989, third–party insurance is obligatory in India.
The FASTag is obligatory and issued by vehicle manufacturers or dealers. Through a change to Form 51 (certificate of insurance), which can now include a section in which the details of FASTag ID are to be collected, the authorities have acquired third-party insurance dependent on FASTag.
This directive shall take effect beginning in April 2021 and continue forward.
In what ways does FASTag affect auto insurance?
If you and your car are involved in a collision at any point in the future, you may be subject to high financial costs.
Additionally, if a third person or their vehicle is involved, you may be held legally liable to pay for the damages incurred by that party. Having third–party insurance protects you against legal and financial consequences if a third party has an injury or loss of life due to an accident or if their car is destroyed.
In the past, you were required to get insurance from a third party through more conventional channels, which may consume a significant amount of your time. On the other hand, in today’s world, purchasing the obligatory insurance policy is a lot quicker and more hassle-free.
FASTag can assist in enhancing the administration of auto insurance policies and the accuracy of the work carried out by the Motor Accident Claims Tribunal. In the future, FASTag may also be able to support the automatic renewal of third party car insurance, with payments being made through FASTag.
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