Madras HC withdraws its order to provide bumper-to-bumper insurance policy for new vehicles

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The court docket was advised that its path would have an unintended impression, inflicting extreme repercussions to society; Justice S. Vaidyanathan stated it was hoped legislation makers would look into this problem

The Madras Excessive Court docket has withdrawn an order handed by it final month directing the State authorities to make sure that all new motor automobiles get bumper-to-bumper insurance coverage cowl together with protection for the driving force, proprietor, passengers and third events for a interval of 5 years.

Justice S. Vaidyanathan withdrew his order after the Insurance coverage Improvement Regulatory Authority (IRDA), Common Insurance coverage Council (GIC) and Society of Indian Car Producers (SIAM) stated it won’t be logistically and economically possible for efficient implementation within the current authorized dispensation.

The court docket was advised that its path would have an unintended impression, inflicting extreme repercussions to society and due to this fact it should be withdrawn within the curiosity of policyholders, the auto trade and the general public at massive.

It was dropped at the discover of the court docket that the problem of long-term third-party insurance coverage protection had been mandated by the Supreme Court docket as early as September 2018 and IRDAI had been periodically monitoring the altering state of affairs occasionally and therefore, there was no want for issuance of such instructions.

Counsel M.B. Raghavan, V. Arun Kumar and N. Vijayaraghavan representing IRDAI, GIC & SIAM respectively advised the court docket that the anxiousness expressed by the court docket with respect to protecting protection to uninsured harmless victims, equivalent to gratuitous occupants in a non-public automotive and pillion riders could be duly taken care of.

“Contemplating the general submissions… this court docket feels that the path issued by this court docket might not be conducive and appropriate for implementation within the present scenario. Due to this fact, the stated path in Paragraph is hereby withdrawn for the current,” the decide wrote.

He additionally stated: “This court docket hopes and trusts that legislation makers will look into this side and look at the necessity for appropriate modification within the Motor Automobiles Act regarding vast protection of automobiles in order to guard the harmless victims. In view of withdrawal of the path concerning bumper-to-bumper coverage, the round dated August 31, 2021 issued by the Joint Transport Commissioner, Chennai additionally stands cancelled.”

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