The Madras High Court has directed the State Transport Secretary to ensure that all motor vehicles sold in Tamil Nadu from September 1 get bumper-to-bumper insurance cover, along with coverage for driver, owner, passengers and third parties for a period of five years.
Justice S. Vaidyanathan issued the direction while setting aside a motor accidents claims tribunal’s order directing an insurance company to pay Rs. 14.65 lakh to the family of a dead car passenger, though the insurance covered only third-party liability and not passengers.
The judge said the claimants could seek compensation only from the car owner and not from the insurer. He also expressed dismay over people showing interest in purchasing expensive cars, but unwilling to shell out a small amount of money towards comprehensive insurance.
“It is saddening to point out that when a vehicle is sold, the purchaser is not clearly informed about the terms of insurance policy and its importance. Similarly, at the time of buying the vehicle, the buyer is also not interested in thoroughly understanding the terms and conditions of the policy, as he/she is more concerned about the vehicle’s performance and not about the policy,” he wrote.
He directed the Transport Secretary to ensure that all new motor vehicles sold from next month get comprehensive insurance policy cover for five years.
It is saddening to point out that when
a vehicle is sold, the purchaser is not clearly informed about the terms of insurance policy
Justice S. Vaidyanathan
Madras High Court
COMMents
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