Owners should buy cover for vehicle’s lifetime: Madras High Court

Owners should buy cover for vehicle’s lifetime: Madras High Court

NEW DELHI: A bench of Madras high court has observed that the Centre should amend the Motor Vehicles Act to make it mandatory for every vehicle to purchase comprehensive insurance policy rather than just third party one so that each occupant is eligible for compensation in case of death or injury.

It has also observed that the owners should make upfront payment of the premium for vehicle’s lifetime to avoid the practice of people often not renewing their policies. The two-member bench has suggested the government to establish a mechanism so that whenever the insurance policy expires, this should be informed to the regional transport office (RTO) and the vehicle should be seized immediately.

The court’s observation came while including the transport and finance ministries and the insurance regulator IRDA suo motu as parties while hearing a case relating to the compensation awarded to the kin of a former police constable who died in a car accident.

Currently, it’s optional for owners to go for comprehensive policy, which includes self damage as well.

Challenging the compensation awarded for constable’s death, the insurance company said that compensation could not be awarded for the death of the occupant since it had only third party insurance cover. The court observed, “According to the seating capacity, the insurance should be made compulsory and no option should be given to choose between policies.”

Meanwhile, the government on Thursday ruled out any possibility of levying additional cess on petrol or diesel to do away with the toll collection on national highways.

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