The Madras High Court in its judgment said that bumper-to-bumper insurance for the next five years would be mandatory if a new car is sold after September 1. This will be separate from the insurance of the driver, passenger and car owner.
Bumper-to-Bumper insurance: The Madras High Court has given a big decision regarding car insurance. The court said in its decision that from September 1, it should be made mandatory for new vehicles to have ‘bumper-to-bumper’ insurance. This insurance will be different from the existing car insurance. At present, the driver, passenger and car owner are insured for five years on the purchase of a car.
The court said in its judgment that “bumper-to-bumper” insurance is necessary for at least five years. When a car is sold after September 1, this insurance policy is required separately. Under this, the coverage of driver, passenger and car owner will be separately. ‘Bumper-to-bumper’ insurance provides 100% coverage including the fiber, metal and rubber parts of the vehicle. Justice S Vaidyanathan, in a recent order, said that beyond this period, the owner of the vehicle should be vigilant to protect the interests of the driver, passengers, third parties and himself, so that no unnecessary liability is imposed on him.
Hearing on the petition of New India Assurance
Madras High Court was hearing a writ petition on behalf of New India Assurance in a case. The insurance company had challenged the decision of the Erode Special District Court (Motor Accident Claims Tribunal) on 7 December 2019. In its petition, it was said on behalf of New India Assurance that the company is only responsible for damages caused by third parties. If the accident happens on the side of the car driver then the company is not responsible for this loss.
Have complete information about insurance while buying a car
Before giving its verdict, the court said that when a person buys a car, neither complete information is shared about the insurance nor the customers are interested in it. It is sad that a buyer is ready to pay a hefty amount to buy a car, but he is hesitant for a small amount while buying insurance.
There are mainly two types of insurance
There are mainly two types of car insurance in our country. When you go to buy a car, information about it is given. The first is Third Party Insurance and the second is Comprehensive Insurance. As per the rules, third party insurance has to be taken in any case, while taking or not taking comprehensive insurance depends on the customer.
Third party insurance required
Under third party insurance, if someone else’s vehicle is damaged by your vehicle, then the insurance company will compensate the damage caused to the other vehicle and the driver. It does not cover the damage caused to the vehicle itself. Comprehensive insurance covers damage to both your own and other vehicle. Apart from this, there are many types of insurance which provide different types of coverage
