If you are going to buy a new car then the news is for you. Madras High Court has given a big decision on bumper-to-bumper insurance that covers 100% loss for 5 years.
The Madras High Court has for the time being put on hold its order to make bumper-to-bumper insurance compulsorily 100% loss compensation for new motor vehicles for 5 years.
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IRDAI had appealed
The General Insurance Company (GIC) had requested the court that the decision cannot be implemented without the approval of the Insurance Regulatory and Development Authority of India (IRDAI) and would require 90 days to do so. Thereafter Justice S. Vaidyanathan decided to put on hold his order passed on 4 August.
What is bumper to bumper insurance? You should know here.
The Madras High Court had earlier ruled that new motor vehicles sold from September 1 must have complete insurance (bumper-to-bumper). Complete insurance i.e. bumper-to-bumper insurance covers 100% damages including the fiber, metal and rubber parts of the vehicle.
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Court had issued circular
Raising the issue on Wednesday, GIC’s counsel told Justice Vaidyanathan, “IRDAI is a regulatory body and its main role is to establish synergy with both private and public sector insurance companies in respect of general issues faced in the field of insurance business.” To do. Therefore, it is necessary that both GIC and Irdai be made parties to this appeal and their views be heard. He said that on August 31, the Joint Transport Commissioner had issued a circular to all the regional transport departments of the state for effective implementation of the court order.
Court postponed the order
The lawyer had filed a petition on August 31 saying that the insurance companies are ready to comply with the orders of the court, but they only distribute those products, which Irdai approves. He requested that the insurance companies need 90 days to make changes in the computer system after the approval of Irdai. Till then, the court can stay its order. After this, the Justice considered the arguments of the counsel and said that GIC and Irdai are necessary parties in the matter and along with it Additional Chief Secretary, Transport Department and Joint Transport Commissioner (R) will also be parties. The court, meanwhile, postponed its order passed on August 4 for the time being. After hearing the parties, if necessary, any clarification can be issued.
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