Madras HC withdraws its order on 5 year bumper-to-bumper insurance

The Madras High Court has withdrawn its order on compulsory five year bumper-to-bumper insurance cover for all new vehicles as it may not be conducive and suitable for implementation in the current situation.

The Court on Monday heard a clarification appeal filed by the General Insurance Council.

Counsels representing the Council, Insurance Regulatory and Development Authority of India (IRDAI), Society of Indian Automobile Manufacturers (SIAM) made their submissions to the court.

The Counsels for various parties had submitted that the orders issued by the court on August 4, 2021 have unintended impact, causing severe repercussions on the society and therefore, the directions issued by this Court may be withdrawn.

They also submitted that in respect of protective coverage to uninsured innocent victims, such as gratuitous occupants in a private car and pillion riders, will be duly taken care in consultation with IRDAI to safeguard the interest of innocent victims, which is the anxiety of the Court.

The Counsel for IRDAI submitted that the insurance regulator will consider better and fuller insurance coverage to all unfortunate victims, be it drivers, owners or gratuitous occupants or pillion riders, as the case may be.

Hearing the parties, the Court said its direction issued on August 4, 2021 may not be conducive and suitable for implementation in the current situation.

"Therefore, the said direction in Paragraph No.13 (of the order issued on 4.8.2021) is hereby withdrawn for the present," the Court said.

On August 4, 2021, while hearing a motor accident compensation case, the court had ordered five years of compulsory bumper-to-bumper insurance cover for all vehicles sold from September 1, 2021.