Drunken driving will not be covered by insurance. The insurance companies are in the process of implementing this rule after the Motor Vehicles Amendment Bill was passed on Friday in the Lok Sabha.

As per the new rule, accidents that have occurred due to drunken driving will not be covered by insurance. In such cases, the driver or the owner of the car will have to cough up the entire amount on his own for causing death or injury.

Earlier the compensation amount would be paid by the insurance companies. However that rule would not be in force following the Lok Sabha passing the amendment bill. This was introduced so that it acted as a deterrent against drunken driving.

Minister for Transport, Nitin Gadkari said that the objective behind the bill was to reduce road accidents. The bill also provides for harsh punishment such as jail term and suspension of licence for offences such as juvenile driving, speeding etc.