Madras High Court suspends motor insurance offer for new vehicles
The General Insurance Council had filed a petition where it had asked for clarification on the definition of bumper to bumper.
The Madras High Court has suspended its 5-year bumper-to-bumper insurance offer for new vehicles. The General Insurance Council had filed a petition where it had asked for clarification on the definition of bumper to bumper as it did not follow a standard industry definition. The Court has stated that the hearing will be on September 13. The industry has also asked for clarification on which vehicles will be included in this order.
According to a report in The Time of India, the order was issued in response to a case involving a private car. The official added that there is not enough information on whether the order will cover all vehicles or only cars. The order needs to take into view the opinion of concerned parties like e Insurance Regulatory and Development Authority of India.
Some non-life insurance industry people have said that this will lead to an increase in demand for overall comprehensive insurance covers. There has been an issue of implementation as states authorities often find it difficult to convince and ensure that all vehicles are insured with a mandatory third-party insurance cover. To this, Madras HC in its order has said that the state transport department is responsible for implementation.
One of the industry officials suggested that all vehicle occupants apart from the driver must be declared as third parties and covered under third-party insurance. This will help them receive unlimited claims as well as increase the claim ratio.