Understand that subsequent to the orders of the Hon’ble High Court of Madras in CMA 1565 of 2020 and CMP 11557 of 2020 dated 4.8.2021, theJoint Transport Commissioner[R] of Tamilnadu has issued a circular to all Regional Transport Offices and all MV Inspectors on the subject of mandatory coverage of ‘bumper-to-bumper’ insurance for a period of 5 years implementation.
The circular refers the Order of the High Court on new vehicles being sold after 1.9.2021, should have mandatory coverage of bumper to bumper insurance – and states that there should be b-to-b insurance every year in addition to covering the driver, passengers and owner of the vehicle for a period of5 years.
The circular directs all REgistering authorities to follow the order without deviation – at the time of registering vehicles, the authorities have been directed to verify the availability of such insurance without deviation.
As discussed in my earlier insurance post – there appears some gap in understanding what in insurance parlance is “bumper-to-bumper” insurance. Perhaps the Hon’ble Judge wanted mandatory insurance coverage as envisaged in Motor vehicles Act + Personal accident coverage for owner-driver (as necessitated by an earlier judgment) + coverage for all passengers, driver and owner traveling in the vehicle.
Whether Own damage cover is the requirement is perhaps a bit unclear and the Insurance companies will now have to activate long-term policy for atleast 5 years – a package policy at that. .. .. and that going by the directive of the Hon’ble Court – it has to be ‘bumper-to-bumper’ insurance, which in someways in an add-on meaning ‘nil-depreciation’.
Understand that the Insurers would be represented in a common way through General Insurance Council.
With regards – S. Sampathkumar1st Sept. 2021
