InvestorQ : What are FASTags and are these mandatory for getting vehicle insurance?
varsha Motwani made post

What are FASTags and are these mandatory for getting vehicle insurance?

Answer
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Ira Shah answered.
2 weeks ago


FASTag is an electronic badge that is stuck to the windshield of your car, this will allow you to go through a toll plaza without having to stop. The information on the badge is collected electronically and payment is required to be made either through the owner’s bank account or through a prepaid wallet linked to his account.

At the beginning of this year, the government has made it mandatory to have a FASTag on all national highway toll plazas to encourage its use. This digitization will also help in making the toll plazas less congested as the traffic will keep moving.

So, considering this, the government is also planning to make a valid FASTag mandatory while availing third-party insurance by bringing an amendment in the certificate of insurance. It plans that to issue any vehicle insurance policy, a third-party insurer shall obtain the details of FASTag ID associated with the vehicle. This has been proposed to be effective from April 2021.