Madras HC does U-turn on bumper-to-bumper cover

Madras HC does U-turn on bumper-to-bumper cover

Sureshkumar.k@timesgroup.com

Chennai:15.09.2021

Madras high court on Tuesday withdrew its earlier order mandating five-year bumper-to-bumper insurance cover for all new vehicles registered from September 1.

Justice S Vaidyanathan recalled the order passed on August 4 after Insurance Regulatory and Development Authority (Irda) submitted that it would consider better and fuller insurance coverage to all unfortunate victims, be it drivers, owners or gratuitous occupants or pillion riders, as the case may be.

While withdrawing his order, Justice Vaidyanathan expressed hope that lawmakers would look into the issue and examine the need for a suitable amendment to Motor Vehicles Act, relating to long-term coverage of vehicles so as to protect innocent victims.

The August 4 order made it mandatory for all vehicles sold after September 1 to have bumper-to-bumper insurance cover for five years.

Amend 3rd-party cover for car occupants: Industry

The Madras HC said the circular issued by the joint transport commissioner, Chennai, based on its earlier order on bumper-to-bumper insurance would stand cancelled.

The court issued its order in August after hearing a case where the occupants of a vehicle suffered an injury during an accident and insurance officials said they were not covered under the mandatory third-party insurance. Insurers can, however, issue a personal accident cover to occupants under a comprehensive cover.

The Madras high court on Monday heard a petition by the General Insurance Council, which sought clarification in respect of an order last month where the court had prescribed compulsory five-year bumperto-bumper insurance for new vehicles with effect from September 1, 2021. The order was, however, kept in abeyance following a petition filed by the GI Council.

According to industry officials, the court had rightly addressed the issue of insurance protection for accident victims who are in a vehicle. Industry officials said if the intention is to make coverage of vehicle occupants mandatory, the same can be done under the motor third-party cover with appropriate amendment and pricing.

Full report on www.toi.in