Vikrant Shekhawat : Sep 13, 2021, 07:03 PM
Bumper To Bumper Insurance: There is relief news for those buying a new car. Now such customers will not have a huge burden of insurance. Actually, now 5 years bumper-to-bumper insurance will not be necessary on the new vehicle. The Madras High Court said that 5 years of bumper to bumper insurance will not be necessary for buying a new vehicle. Considering the arguments of the Association of General Insurance Companies, Auto Companies, Association of Insurance Agents, the Madras High Court will make changes within its order of 4 August and remove the condition of simultaneous insurance for 5 years.Madras High Court said this on 5 years bumper-to-bumper insurance
During today's hearing, the court clearly said that their purpose is only the safety of the passenger. The court said in its observation that the suggestions of the court would be incorporated in the old order and the necessary rules would be left to the law-making parliament. That is, now the order for bumper to bumper insurance has ended.
It is worth noting that on the purchase of a new vehicle, the cost of vehicles was increasing from ₹ 50,000 to ₹ 200000 after taking the necessary bumper to bumper insurance for 5 years, which was also opposed by the auto companies. Now the Madras High Court has given its verdict on this. Now the Madras High Court will modify the August order.
The court had sought suggestions
According to the court, only the suggestion of the court will be on bumper to bumper insurance, the rule to make it necessary will be left to the Parliament. Significantly, on the challenge of implementing the rules, the court had sought suggestions on September 1. After this, many organizations including auto companies, IRDA had given their suggestions to the Madras High Court.
Let us tell you that in August, the order for bumper to bumper insurance for 5 years was passed on the purchase of a new vehicle. But after this, it was also opposed by successive auto companies as it was challenging to implement 5 years insurance simultaneously.
During today's hearing, the court clearly said that their purpose is only the safety of the passenger. The court said in its observation that the suggestions of the court would be incorporated in the old order and the necessary rules would be left to the law-making parliament. That is, now the order for bumper to bumper insurance has ended.
It is worth noting that on the purchase of a new vehicle, the cost of vehicles was increasing from ₹ 50,000 to ₹ 200000 after taking the necessary bumper to bumper insurance for 5 years, which was also opposed by the auto companies. Now the Madras High Court has given its verdict on this. Now the Madras High Court will modify the August order.
The court had sought suggestions
According to the court, only the suggestion of the court will be on bumper to bumper insurance, the rule to make it necessary will be left to the Parliament. Significantly, on the challenge of implementing the rules, the court had sought suggestions on September 1. After this, many organizations including auto companies, IRDA had given their suggestions to the Madras High Court.
Let us tell you that in August, the order for bumper to bumper insurance for 5 years was passed on the purchase of a new vehicle. But after this, it was also opposed by successive auto companies as it was challenging to implement 5 years insurance simultaneously.