Bumper-to-bumper car insurance turns into obligatory in India – insurance business

The Indian High Court in Madras has ruled that from September 1st, “bumper-to-bumper” insurance will be mandatory for all new vehicles sold on or after September 1st.

The bumper-to-bumper insurance is usually offered as an addition to the usual motor vehicle insurance. It covers the cost of the entire car, with the exception of some engine parts, batteries, tires and glass. It is also known as zero depreciation coverage.

“This court orders that every time a new vehicle is sold after September 1, 2021, a bumper-to-bumper insurance must be taken out for a period of five years in addition to the protection of the driver, the passengers and the owner of the vehicle. “Said Judge S Vaidyanathan in the court ruling. "According to this, the vehicle owner must carefully protect the interests of the driver, passengers, third parties and himself in order to avoid unnecessary liability on the part of the vehicle owner."

The verdict came after the court set aside the $ 1.46 million (SG $ 26,700) award of INR 1.46 million (SG $ 26,700) awarded to a road accident victim's family by a car accident court, the Times of India reported. The vehicle's insurer, New India Assurance, challenged the surcharge, citing policy violations and the fact that the vehicle only had liability insurance that did not cover the occupants of the vehicle.

After the decision, the victim's family is now free to claim the amount from the vehicle owner who was also in the vehicle at the time of the accident.

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