Summary:
Chennai, Sep 14 (PTI) The Madras High Court has withdrawn its earlier order directing insurance companies to ensure bumper-to-bumper insurance for five years for new vehicles sold from September 1, 2021, after IRDA and others submitted it was impossible to implement the directive.
The withdrawal follows the submissions of the counsels for the Insurance Regulatory and Development Authority of India (IRDAI), General Insurance Company (GIC) and the Society of Indian Automobile Manufacturers (SIAM), a non-profit entity that has been espousing the cause of automobile industry, that the stipulation was impossible to implement.
"This court feels that the direction issued on August 4 this year in paragraph 13 may not be conducive and suitable for implementation in the current situation.
Therefore, the said direction in that para is hereby withdrawn for the present," Justice S Vaidyanathan said on Monday .
The judge hoped and trusted the lawmakers would look into this aspect and examine the need for suitable amendment in the Act relating to wide coverage of vehicles so as to protect the innocent victims.
In view of withdrawal of the direction, the circular dated August 31 issued by the Joint Transport Commissioner in this connection also stands cancelled, the judge said.