Bumper-to-bumper insurance should be mandatory whenever a new vehicle is sold, beginning September 1, the Madras High Court has ruled.
This must be in addition to covering the driver, passengers and owner of the vehicle for a period of five years, according to a landmark order of Justice S Vaidyanathan.
Since there is no provision to extend bumper-to-bumper policy beyond five years, the vehicle owner must safeguard interest of driver, passengers, third parties and himself/herself to avoid unnecessary liability being foisted on the owner of the vehicle.
New India Assurance Company Limited had filed a writ petition in Avalpoondurai, challenging the order dated December 7, 2019 of the Motor Accidents Claims Tribunal, Special District Court in Erode.
Pointing out that the insurance policy was only an ‘Act Policy’, which would cover only the risk that might be confronted by a third party to the vehicle and not its occupants, the insurance company contended that coverage for an occupant of the vehicle could be extended upon payment of additional premium by the owner.
The order will come to the aid of accident victims. However, the judge could not help the claimants in the said case as the vehicle in which their breadwinner was travelling/driving was covered only with third-party insurance.