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Disadvantages of the BH number plates

This article outlines the major drawbacks of BH number plates, including resale difficulties, limited eligibility, state restrictions and renewal challenges. It highlights insurance-related concerns and explains why BH registration may complicate long-term ownership for many vehicle owners.

  • 30 Apr 2024
  • 6 min read
  • 7825 views

Updated on - 13 Jan 2026

The Bharat (BH) number plate system aims to simplify vehicle registration for people who move frequently between states. It allows nationwide validity without the need for re-registration in a new state. While the idea sounds convenient, several practical issues have surfaced for vehicle owners. Many have realised that the process, though beneficial on paper, comes with hidden complications that affect ownership, resale and other aspects of vehicle management. Before deciding on a BH registration, it is essential to understand these disadvantages and how they can influence long-term vehicle use and related responsibilities.

Drawbacks of Bharat Series plates

Some of the disadvantages of having a BH number plate are:

  • Limited eligibility

Currently, only bank employees, members of the armed forces, government officials and employees of private companies with offices spread throughout several states or union territories are eligible to use the BH number plate. Therefore, only some car owners can benefit from the BH series.

  • Transport vehicles excluded

Only passenger cars are eligible for the BH number plate. Buses, cabs and trucks are unsuitable for the BH series. It reduces the range of convenience that BH number plates have to provide.

  • Complications in vehicle resale and ownership transfer

Selling a vehicle with a BH number plate is often more complex than selling one with a regular registration. Since BH numbers follow a separate tax and registration system, selling to a non-eligible buyer requires converting it to a state registration, a process involving extra paperwork, costs and delays. Limited awareness about the transfer process also makes buyers hesitant, often lowering resale value and slowing the sale.

  • Limited acceptance in certain states

BH-series number plates have limited eligibility in certain states, such as Karnataka, especially for private sector employees. This is because of how local authorities interpret eligibility rules. While widely available across many states, some jurisdictions have delayed implementation or added restrictions, which can create confusion around taxes, registrations and transfers.

  • Renewal and re-registration challenges

Under the BH number plate system, road tax is paid every two years instead of a one-time payment. While convenient, delays in online renewal can lead to penalties. Relocating to states that haven’t fully adopted the BH system may require extra verification or paperwork, causing confusion and defeating its seamless purpose. For vehicle owners who anticipate more seamless digital control, this circumstance may result in needless worry.

  • Impact on vehicle insurance policies

Car insurance might sometimes become problematic for people with BH registration. Some insurers have complained about delays or uncertainty when changing vehicle details under the BH format, particularly when renewing or transferring insurance. This may impact policy modifications or claim settlements. Not all companies are familiar with the BH format, making the right choice crucial.

If you need help finding the best insurance for your BH vehicle, fill out the form on this page, and we’ll help you get a policy that fits your vehicle, coverage and budget.

Conclusion

Although some practical challenges remain, the BH number plate system has the potential to simplify car ownership in India. Understanding its benefits and drawbacks can help owners avoid legal or financial issues related to car insurance, whether it's comprehensive or third party car insurance. While the concept is strong in theory, successful nationwide implementation will require greater coordination and consistency across states.

FAQs

1. Can I apply for a BH number plate if I am self-employed?

No, only government employees and private company workers with offices in multiple states are eligible for BH registration.

2. What happens if I move to a state that does not accept BH number plates?

You may need to convert your BH registration to a regular state registration before renewal or local verification.

3. Can I sell my BH-registered car to someone who is not eligible for BH registration?

Yes, but you must first change the number plate to a regular state registration, which involves extra paperwork and fees.


Disclaimer: This blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. Verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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