In a groundbreaking order, the Madras High Court has ruled that "bumper-to-bumper" insurance should be mandatory whenever a new vehicle is sold, from September 1. This must be in addition to covering the driver, passengers and owner of the vehicle, for a period of five years.
Justice S Vaidyanathan passed the direction while setting aside the award by the Motor Accident Claims Tribunal wherein a sum of Rs 14,65,800 was directed to be paid by the insurance company to the claimants who were relatives of the deceased, as compensation for his death in an accident. The Court observation reads as follows: "The owner of the vehicle must be cautious in safeguarding the interest of driver, passengers, third parties and himself/herself, so as to avoid unnecessary liability being foisted on the owner of the vehicle, as beyond five years, as on date there is no provision to extend the bumper to bumper policy, due to its non-availability”
Furthermore, the insurance company had submitted that the deceased was not the driver of the vehicle at the time of the accident. However, rejection such a contention, the MACT had held that since the entire policy conditions had not been produced, it was difficult to ascertain whether the insurance company was liable to pay the compensation.
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