Madras high court in its order said after September 1, all vehicles sold should have bumper-to-bumper insurance cover for five years mandatorily. While hearing a writ petition from the New India Assurance Company Limited, Justice S Vaidyanathan passed an order challenging the orders of the Motor Accidents Claims Tribunal, Special District Court given on December 7, 2019 in Erode.
The motor accident tribunal following death of a man in a vehicle accident had in 2019 directed the insurance company to pay Rs 14.65 lakh as compensation to the family of the deceased.
New India Assurance Company Limited challenged the order and had moved a writ petition stating it was only a ‘third party' insurance, which does not cover its occupants and only covers the injuries caused to a third party. In this case the court couldn't help the current claimants as the car was only insured by a third party, and had to quash the tribunal's order.
However in a landmark judgment, the order was passed to ensure that all people who travel in a vehicle, including the driver, are covered under insurance.
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