The Madras supreme court ruled on Thursday that ‘bumper-to-bumper’ insurance was to be made mandatory for a replacement vehicle whenever it’s sold. this is often set to return into effect from September 1. The court stated that this could be additionally to the coverage of the driving force , passengers and therefore the owner of the vehicle for a period extending up to 5 years. then period, the owner of the vehicle must take care in safeguarding the security of the driving force , passengers, any third parties also as themselves.
“This court directs that whenever a replacement vehicle is sold after September 1, it’s mandatory for coverage of bumper-to-bumper insurance per annum , additionally to covering the driving force , passengers and owner of the vehicle, for a period of 5 years. Thereafter, the owner of the vehicle must take care in safeguarding the interest of driver, passengers, third parties and himself/ herself, so on avoid unnecessary liability being foisted on the owner of the vehicle, as beyond five years, as on date there’s no provision to increase the bumper-to-bumper policy, thanks to its non-availability,” said the Judge.
The Judge was allowing a writ petition from the New India Assurance Company Limited in Avalpoondurai, which was challenging the orders dated back to December 7, 2019, of the Motor Accidents Claims Tribunal, Special District Court in Erode. The insurance firm argued that the policy was only an ‘Act Policy’. this suggests that the coverage would only reach the risks to the vehicle by a 3rd party and not the occupants of the vehicle itself.
The passing of this order means accident victims in Tamil Nadu will have greater coverage on their side. Justice Vaidyanathan also made it clear that this order wouldn’t preclude the claimants from claiming compensation for the death of the deceased from the owner of the car.
What is Bumper-to-Bumper Insurance and the way Does it Work?This is essentially a kind of automobile insurance that gives you complete coverage of the vehicle, regardless of the depreciation of its parts. this suggests that once you do face an accident and have damages that require covering, the insurer won’t deduct the depreciation value from the coverage. Additionally, the motor insurer will payout for the whole cost of the replacement body parts for your vehicle. However, this sort of insurance doesn’t cover engine damage that’s caused by oil leaks or water ingression. There are a couple of fine-print restrictions like that also as restrictions on the amount of times you’ll file a claim during a given year.
While it gives you a wider range of coverage, it should be noted that you simply are going to be paying a better premium for this sort of policy. it’s a minimum of around 20 to 30 per cent higher in premiums than your basic comprehensive automobile insurance policy that you simply might otherwise choose .
However, there are more benefits thereto . For one, it are often availed at the time of policy purchase and renewal. you’ll also claim the complete amount, whereas the payout from a typical coverage is merely up to around 40 per cent. it’s highly beneficial for brand spanking new cars or for vehicles with a maximum regulation of three years. The policy also can be availed at the time of the policy purchase or renewal.
