CHENNAI: The Madras High Court has withdrawn its earlier order directing insurance companies to ensure bumper-to-bumper insurance for five years for new vehicles sold from September 1, 2021. The move comes after the Insurance Regulatory and Development Authority of India (IRDAI) and others submitted that it would be impossible to implement the directive.
Considering the overall submissions made by the parties, the court said mandating the policy “may not be conducive and suitable for implementation”. IRDAI, General Insurance Company (GIC), and the Society of Indian Automobile Manufacturers (SIAM), said in their submissions that the stipulation was impossible to implement. Currently, no firm offers a five-year bumper-to-bumper insurance. The GIC added it cannot launch any new product or add-on cover without receiving approval from IRDAI.
“This court feels that the direction issued on August 4 this year in paragraph 13 may not be conducive and suitable for implementation in the current situation. Therefore, the said direction in that para is hereby withdrawn for the present,” Justice S Vaidyanathan said. The judge hoped that lawmakers would look into this aspect and examine the need for a suitable amendment in the Act relating to wide coverage of vehicles. By virtue of withdrawal of the direction, the circular dated August 31, issued by the Joint Transport Commissioner in this connection, also stands cancelled, said the judge.
IRDAI, GIC, and SIAM said the views expressed by the judge on August 4 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 of in consultation with the IRDAI to safeguard the interests of victims.