The Madras High Court said that this would be extra than the insurance covering the driver, passengers and vehicle owner for the tenure of five years. Bumper-to-bumper insurance will provide 100% coverage of the vehicle with fiber, metal and rubber parts.
Now on selling a new vehicle, its complete insurance i.e. bumper to bumper insurance has become mandatory. This rule will come into effect from September 1. In fact, the Madras High Court has said this in its order. He said this would be an addition to the insurance covering the driver, passengers and vehicle owner for a tenure of five years. Bumper-to-bumper insurance will provide 100% coverage of the vehicle with fiber, metal and rubber parts.
Justice S Vaidya nathan of the Madras High Court, in his recent order, said that after this tenure, the vehicle owner should be vigilant to protect the interests of the driver, passengers, third parties and himself, so that no unnecessary liability is imposed on him. He allowed a petition by New India Assurance Company Limited challenging the December 7, 2019 order of the Motor Accident Claims Tribunal of the Special District Court at Erode.
The insurance company said that the pending insurance policy was only for damage caused to the vehicle by a third party and not to the people in the vehicle. The insurance company argued that this coverage can be increased by paying extra premium by the car owner.
The Justice in his order said that it is very sad that when a vehicle is sold, the buyer is not clearly informed about the terms and conditions of the policy and likewise the buyer is also informed about the terms and conditions of the policy. There is no interest in understanding well, as he is more concerned about the performance of the vehicle and not the policy.
Let us tell you that the discussion about this type of insurance was going on in the whole country for a long time. On which no concrete result was coming out. Now after the order of the Madras High Court, such a policy can be easily implemented across the country.
