The Madras High Court has withdrawn its earlier order directing insurance companies to ensure bumper-to-bumper insurance for five years for new vehicles sold with effect from September 1, 2021. IRDA and others said that it is impossible to implement. After which the court has withdrawn its decision.
Justice S Vaidyanathan said, the court is of the view that the direction issued in paragraph 13 on August 4 this year may not be conducive and appropriate to implement in the present situation. Therefore, the said instruction in that paragraph stands withdrawn for the time being.
The judge expressed hope and confidence that law makers would look into this aspect and examine the need for suitable amendments to the Act relating to wider coverage of vehicles so as to protect innocent victims. The judge said that in view of the withdrawal of the direction, the circular dated August 31 issued in this regard by the Joint Transport Commissioner is also quashed.
IRDAI, GIC and SIAM said that the views expressed by the judge on August 4 with regard to security coverage to uninsured innocent victims, such as for the safety of unnecessary occupants in a private car and those who ride behind Due care will be taken in consultation with IRDAI.
He said that the order mandating coverage of bumper to bumper policy may not be logically and economically viable for effective implementation in the present legal system. This will have the reverse effect, causing serious impact on the society and hence, the directions issued by the Court are withdrawn in the interest of the policyholders, the automobile industry and the public at large.