Aishwarya Rathore –
Published on August 27, 2021, at 13:47 IST
The Madras High Court ordered that all vehicles sold after September 1 must be covered by bumper-to-bumper insurance for a period of five years, in addition to covering the driver, passengers, and vehicle owner.
The case involved a man who died in a vehicle accident.
In 2019, the Motor Accidents Claims Tribunal (MACT) ordered the Insurance Company to pay Rs. 14.65 lakh in compensation to the deceased’s family.
Later, the Insurance Company filed a Writ Petition claiming that the deceased only had “third party” insurance, which only covered injuries to a third party and not the vehicle’s occupants.
Since the car was only insured by a third party, the Court was unable to aid the current claimants and had to quash the Tribunal’s order.
The Court observed, “The owner of the vehicle must be cautious in protecting the interests of the driver, passengers, third parties, and himself, in order to avoid unnecessary liability being imposed on the owner of the vehicle, as there is no provision to extend the bumper to bumper policy beyond five years.”
Thus, Justice Vaidyanathan declared bumper-to-bumper coverage mandatory in order to protect the safety of a vehicle’s occupants.
The case will be next heard on September 30.
Click here to Read/Download the Order
Also Read: What is Third-Party liability in Vehicle Insurance?