📷 Image: Wikimedia Commons / Prince Roy
Crime
Unknowingly Using Fake Car Insurance: Can You Be Held Liable?
✍️ The Times of India
🗓 29 Aug 2026, 09:39 PM
👁 26
A driver who unknowingly used a counterfeit insurance certificate in a traffic collision may still face legal consequences under Indian law.
A recent inquiry has highlighted that using a forged insurance document in a road accident can expose a driver to liability, even if the fraud was not known to them.
Under the Motor Vehicles Act, 1988, a valid insurance certificate is mandatory for all motor vehicles. Section 115 makes it an offence to use a false certificate, and Section 116 imposes penalties of up to ₹5 lakh and up to two years’ imprisonment.
Courts have consistently ruled that ignorance of the falsity does not absolve the driver. The rationale is that the law requires due diligence, and a responsible owner must verify the authenticity of the policy.
Lawyers advise motorists to check the insurer’s official website, verify the policy number, and keep a digital copy of the certificate to avoid inadvertent violations.
Under the Motor Vehicles Act, 1988, a valid insurance certificate is mandatory for all motor vehicles. Section 115 makes it an offence to use a false certificate, and Section 116 imposes penalties of up to ₹5 lakh and up to two years’ imprisonment.
Courts have consistently ruled that ignorance of the falsity does not absolve the driver. The rationale is that the law requires due diligence, and a responsible owner must verify the authenticity of the policy.
Lawyers advise motorists to check the insurer’s official website, verify the policy number, and keep a digital copy of the certificate to avoid inadvertent violations.