A vehicular vision system includes a plurality of cameras disposed at a vehicle and viewing interior of the vehicle and capturing image data. An electronic control unit (ECU) includes an image processor for processing image data captured by the plurality of cameras to detect presence of the hands of the driver of the vehicle in the view of the plurality of cameras. The vehicular vision system, responsive to processing by the image processor of image data captured by the plurality of cameras, determines a position of the driver's hands of the vehicle relative to a steering wheel of the vehicle. The vehicular vision system, responsive to determining that at least one of the driver's hands is not on the steering wheel and responsive to determining the vehicle is at or approaching a hazardous condition, generates an alert to the driver.