The Madras High Court has ordered to do away with the mandatory requirement of bumper to bumper insurance for new motor vehicles, which covers 100% damage for five years, for the time being. The court said in its decision that the final decision regarding the necessity of this insurance has been left to the Parliament. According to the information, the Madras High Court will modify its decision given in August.
The court suggested on the necessity of insurance
The Madras High Court said that the 5-year bumper to bumper insurance will not be necessary for buying a new vehicle. The court has said that this will be their only suggestion, Parliament will decide whether to make this rule mandatory. Earlier in August, the Madras High Court had said that bumper to bumper insurance should be made mandatory for vehicles sold from September 1.
100% coverage of damages available in bumper to bumper insurance
Bumper to bumper insurance provides 100% coverage of damages on new vehicles made of metal, fiber and rubber parts. Earlier, the General Insurance Company had requested the court that without the permission of the Insurance Regulatory and Development Authority of India (IRDAI), it would face many difficulties in implementing the decision of Bumper to Bumper Insurance. The company had said that at least 90 days (3 months) would be required for this. Following this request of the General Insurance Company, Justice S. Vaidyanathan had decided to keep the court’s decision on hold.
The company’s lawyer had put the side in the court
The counsel for General Insurance Company had said in the court that IRDAI is a regulatory body, which coordinates between government and private companies on important issues in the insurance business. Therefore, in this important matter, by making General Insurance Company and Insurance Regulatory and Development Authority of India parties, their views should be considered.