Return Insurance Regulatory and Development Authority of India (IRDAI), General Insurance Company (GIC) and Society of Indian Automobile Manufacturers (Siam), a non-profit organization supporting the cause of the automobile industry, which was impossible to implement.
Justice S Vaidyanathan observed, “This Court is of the view that the direction issued in paragraph 13 on August 4 this year may not be conducive and appropriate to apply in the present situation. Therefore, the said direction in that paragraph shall be withdrawn for the present.” is taken.” Monday .
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.
The 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 unnecessary occupants in a private car and for the safety of rear occupants Due care will be taken in consultation. The interest of innocent victims, which was the concern of the judge.
He submitted 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. They will have an unintended effect, which will have a serious impact on the society and hence, the directions issued by this Court can be withdrawn in the interest of the policyholders, the automobile industry and the general public.
He also brought to the notice of the judge that the issue of long-term third party insurance coverage has been mandated by the Supreme Court in early September, 2018, and the regulatory body – IRDAI, is monitoring the changing scenario from time to time. from time to time and hence, there is no need to issue such mandatory instructions.
He said that IRDAI would consider better and complete insurance coverage for all unfortunate victims, be it the driver, owner or unnecessary occupant or rear-ride, as the case may be, and suitable modification/withdrawal of the instructions issued. prayed for.
“In view of the overall submissions made by the parties including the counsels and taking into account the concern of IRDAI, this Court feels that the directions issued by this Court in para No. 13 on 4th August are not conducive and suitable for implementation at present position. Therefore, the said direction is withdrawn for the present,” the judge said.
Last month, the Madras High Court ruled that “bumper-to-bumper” insurance should be mandatory whenever a new vehicle is sold from September 1. This should be in addition to covering the driver, passengers and the owner of the vehicle. A period of five years, was held by the court.