Make mandatory 'bumper-to-bumper' insurance from September 1: Madras HC
Chennai, Aug 26: In a crucial order, the Madras High Court has ruled that five-year bumper-to-bumper insurance should be mandatory for all vehicles sold from September 1.
The family of Sadayappan, who died in a road accident in August 2016 in Okanagankal, has filed a case in the Erode Motor Vehicle Accident Compensation Tribunal seeking compensation.
The tribunal, which heard the case, ordered the Sadayappan family to pay Rs 14 lakh 65 thousand in compensation.
Justice S Vaidyanathan was allowing a writ petition from the New India Assurance Company Limited in Avalpoondurai, challenging the orders dated December 7, 2019 of the Motor Accidents Claims Tribunal, Special District Court in Erode.
The insurance company pointed out that the insurance policy in question was only an "Act Policy", which would cover only the risk that might be confronted by a third party to the vehicle and not its occupants.
The company said that the deceased was insured only on the basis of the driver and owner of the vehicle and that the non-driver could only pay compensation of one lakh rupees for the death.
The insurance company pointed out that although Sadyappan was identified as the driver of the vehicle, he did not drive the vehicle at the time of the accident and there was no evidence that he was paid.
Left with no other choice but to deprive the claimants of the accident benefits ordered by the Motor Accidents Claims Tribunal in Erode, the judge quashed the order of the Tribunal awarding a compensation of Rs 14.65 lakh to K Parvathy and three others.
The judge, however, made it clear that this order will not preclude the claimants from claiming compensation for the death of the deceased from the owner of the car, as per the terms of the policy for which the car was insured.
From September 1, all new vehicles sold will be required to have a five-year bumper-to-bumper insurance policy that covers all owners, drivers and passengers.
The Additional Secretary General of the Department of Transport of the State of Tamil Nadu has also directed the insurance companies to issue appropriate orders in this regard.
The judge also directed the Tamil Nadu government to file a report on September 30 regarding the execution of the court order.