What does a yellow number plate vehicle mean?

Updated on - 02 Jan 2026

Have you noticed taxis, trucks or auto-rickshaws with yellow number plates and wondered what makes them different? Those vehicles aren’t just for getting around; they’re commercial vehicles, used to transport people or goods for a fee. Because they’re constantly on the move and part of the public transport network, they must follow stricter rules on safety, licensing and insurance.

This blog breaks downs everything you need to know about yellow number plate vehicles – who can use them, what permits are required and the key responsibilities that come with owning one.

Who Can Use Yellow Number Plates?

Vehicles used for commercial purposes, such as taxis, goods carriers, tourist vehicles or delivery vans, are required to have yellow number plates with black lettering. To operate such vehicles legally in India, the owner must register the vehicle as a commercial one and obtain the appropriate permit under the Motor Vehicles Act.

The driver must hold an appropriate driving licence. A commercial endorsement is required for heavy or transport vehicles, but light motor vehicles (LMVs) like small taxis can operate with a standard LMV licence.

Private vehicles cannot use yellow plates; they must display white number plates with black lettering instead.

Rules and regulations for yellow number plate vehicles

Here’s what you need to know about guidelines for yellow number plate vehicles:

• You need to register your four-wheeler as a commercial vehicle with the Regional Transport Office (RTO).
• Get the necessary permits and licence.
• Make sure your vehicle meets safety and pollution standards.
• Always display the yellow number plates clearly.
• Follow commercial traffic rules, which can be stricter and include higher taxes and tolls.
• Have valid and up-to-date commercial insurance.

Commercial vs private vehicles: Key distinctions

Commercial vehicles and private vehicles have distinct roles and legal requirements that shape how they are used and managed on Indian roads.

The table shows the distinction between the two:

Benefits and responsibilities of owning a yellow number plate vehicle

There are clear benefits to having a yellow number plate on your vehicle, but you also have some important duties to take care of:

Benefits:

• You will get legal permission to transport passengers or goods for a fee.
• Access to markets and licences for regulated commercial vehicles.
• Opportunity to earn money through commercial activities.

Responsibilities:

• You must follow strict commercial vehicle rules, as well as undertake regular fitness and safety checks of your four-wheeler.
• Get commercial vehicle insurance, which is different from private insurance.
• Pay higher road taxes and fees.
• Use the vehicle only for commercial purposes.
• Display the yellow number plate with black letters clearly.
• Keep permits and certificates up to date with timely renewals.

Penalties for misusing a yellow number plate

If you put a yellow plate on a personal car or don't follow the rules for commercial vehicles, you could get fined and face legal problems. Enforcement officials strictly look for any misuse, so it’s essential to use the correct number plate for your vehicle.

Things to consider before converting your vehicle to commercial use

Before converting your vehicle for commercial use, consider these important points:

• Confirm that your vehicle meets safety and pollution standards.
• Make sure to collect all the required documents, such as registration, insurance and pollution certificates.
• Pay all the additional costs for commercial registration and permits.
• Know you’ll need commercial vehicle insurance.
• Make sure the driver has an appropriate driving licence.
• Be ready for possible vehicle inspections by the RTO.
• Understand stricter rules and taxes for commercial vehicles.

How can insurance help

If you drive a commercial vehicle, having both health and car insurance is essential. Long hours on the road can take a toll, from fatigue and health issues to the risk of accidents. The right insurance coverage ensures you’re protected on all fronts, helping you manage unexpected medical costs and vehicle-related expenses with ease. It’s a smart way to stay safe, secure and financially prepared while doing your job.

Conclusion

If your vehicle has a yellow number plate, it signifies that it is registered for commercial use, whether for transporting passengers, delivering goods or providing other business-related services. Operating such a vehicle comes with specific responsibilities, including complying with safety regulations, maintaining valid permits and securing comprehensive car insurance. While these requirements may seem demanding, they are essential to ensure legal compliance, financial protection and the long-term safety of your business on the road.

Remember, buying car insurance online is one of the easiest ways to stay protected. It saves time, offers instant policy comparisons and gives you complete transparency on premiums and coverage.

While you take the right steps to financially protect your vehicle, get personalised insurance guidance by filling out the form on this page.

FAQs

1. Can I convert my private vehicle to a commercial one?

Yes, you can convert a private vehicle into a commercial one by applying at the RTO concerned. You’ll need to update the registration, pay fees, get a fitness certificate, commercial insurance and a valid permit. Once approved, your vehicle will receive a yellow number plate for legal use.

2. Are yellow-number-plate vehicles charged higher tolls and taxes?

Commercial vehicles with yellow number plates generally pay higher taxes and tolls since they’re used for business purposes and spend more time on the roads, leading to greater wear and tear on public infrastructure.

3. What happens if a private vehicle uses a yellow number plate?

Using a yellow number plate on a private car is illegal and can lead to fines or other legal penalties. Always ensure your vehicle displays the correct plate type to stay compliant and avoid unnecessary trouble.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to 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.