Govt plans to make FASTag mandatory for buying third party vehicle insurance from April 1, 2021


The Ministry of Road Transport and Highways has proposed to make FASTag mandatory for buying new third-party motor insurance for your car with effect from April 1, 2021.

Besides, the ministry is also considering s making FASTag mandatory from January 1, 2021 for four-wheelers sold before December 2017.

A government press release, issued on September 3, 2020, said “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.”

As per Central Motor Vehicles Rules, 1989, FASTag had been made mandatory since 2017 for registration of new four-wheeled Vehicles and is to be supplied by the Vehicle Manufacturer or their dealers. It had further been mandated that the renewal of fitness certificate will be done only after the fitment of FASTag for the Transport Vehicles. Further that, for National Permit Vehicles, the fitment of FASTag has been mandated since 1st Oct 2019, as per the release.

What are FASTags?

FASTags are prepaid rechargeable tags for toll collection that allow automatic payment deduction from the FASTag. They are normally affixed on the windscreen of your vehicle. With the help of a FASTag, you will not have to stop your vehicle at toll plazas to pay the toll. As soon as the vehicle crosses the toll plaza, the toll fee will get deducted from the bank account/prepaid wallet linked to the FASTag affixed on the vehicle’s windscreen. An activated FASTtag works on Radio Frequency Identification (RFID) technology. Moreover, these FASTags do not have any expiry date, that is, they can be used as long as they are readable at the toll plaza and have not been tampered with.

Point to note

You cannot use one FASTag with two or more vehicles, you will have to buy two separate FASTags for separate vehicles.





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