September 1,2018:
On Friday, Supreme Court refused to extend the September 1 deadline for Third-party insurance cover for new cars should mandatorily be for a period of three years and for two wheelers, it should be for five years.
Which means that from Saturday, it would become mandatory for the new cars and two-wheelers to have third-party insurance cover of three and five years respectively.
Apex Court Bench comprising of Justice Madan B Lokur and Justice S Abdul Nazeer dismissed an Application filed by General Insurance Council (GIC), constituted under provision of Insurance Act, 1938 by the Insurance Regulatory and Development Authority (IRDA), seeking extension of deadline fixed by Supreme Court.
Supreme Court had on July 20, 2018 expounded that Third-party insurance cover for new cars should mandatorily be for a period of three years and for two wheelers, it should be for five years.
Currently, the insurance cover period is one year.
Supreme Court had then directed that the decision be implemented from September 1.
SC Bench was hearing a petition filed by Coimbatore-based surgeon S Rajaseekaran which was treated as a PIL by it. Apex Court had on April 22, 2014, constituted a committee on road safety which has submitted several reports since.
Supreme Court had on July 20 stated that third-party insurance of four-wheelers and two-wheelers be made mandatory so that the victims of road accidents could get compensation and the insurance firms should look at it from a "human point of view" and not take a commercial perspective.
Supreme Court Committee on Road Safety had earlier recommended that at the time of sale of two and four wheelers, third-party insurance should be made mandatory for a period of five and three years respectively, instead of one year at present.
Source PTI
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