Madras District Court withdraws bumper-to-bumper insurance order | Chennai News

CHENNAI: The Madras District Court on Tuesday withdrew its earlier order imposing five-year bumper-to-bumper insurance coverage for all new vehicles registered from September 1.
Judge S Vaidyanathan recalled the orders after the Insurance Regulatory and Development Authority (IRDA) said it would consider better and comprehensive insurance coverage for all unfortunate victims, whether they are free drivers, owners or occupants or passengers, as the case may be.
Expressing the hope that lawmakers would look into the matter and consider the need for an appropriate amendment to the Motor Vehicle Act, regarding long-term vehicle coverage to protect innocent victims, Judge Vaidyanathan withdrew its ordinance adopted on August 4.
The provisional decrees passed on August 4 made five-year bumper-to-bumper insurance coverage compulsory for all vehicles sold after September 1. Judge Vaidyanathan passed the order in an effort to ensure that everyone who travels in a vehicle, including the driver, is covered by insurance.
However, IRDA and other organizations informed the tribunal that the leadership may not be logistically and economically feasible for effective implementation under the current legal framework.
They argued that the investigation had an unintended impact, causing serious repercussions on society, and asked the court to withdraw the decision in the interests of policyholders, the auto industry and the general public.
It was also brought to the attention of the court that the issue of long-term liability insurance coverage had been mandated by the Supreme Court as early as September 2018. “IRDAI periodically monitors the evolution of the scenario from time to time. other. and therefore, there is no need to issue such mandatory instructions, ”the companies said.
Judge Vaidyanathan issued the order while setting aside a sentence issued by a traffic accident court ordering an insurance company to pay Rs 14.65 lakh as compensation to the family of a well deceased person that the vehicle involved in the accident has only been covered with a “third party” insurance (covers injuries / damage caused to third parties and not to occupants of the vehicle or damage caused to the vehicle).

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