“This court directs that whenever a new vehicle is sold after Sept. 01, 2021, it is mandatory for coverage of bumper to bumper insurance, in addition to covering the driver, passengers and owner of the vehicle, for a period of five years”. He added, “Thereafter, the owner of the vehicle must be cautious in safeguarding the interest of driver, passengers, third parties and himself/herself, so as to avoid unnecessary liability being foisted on the owner of the vehicle.”
Bumper-to-bumper insurance gives a broad range of coverage to the vehicle owner. However, this kind of insurance has higher premiums. When compared with a standard comprehensive car insurance coverage, this kind of insurance requires at least a 20-30% increase in rates. The ruling implies that accident victims in Tamil Nadu will now be covered by a larger insurance policy. Judge S. Vaidyanathan of the Madras High Court made it plain in his judgment that the judgement will not prevent the claimants from filing compensation from the vehicle’s owner for the victim’s death.
According to the media, the verdict came after the court overturned a vehicle accident tribunal’s judgment of INR1.46 million (SG$26,700) to the family of a road accident victim. New India Assurance, the car’s insurer, appealed the decision, claiming policy breaches and the fact that the vehicle only had third-party insurance, and did not cover the occupants of the vehicle. Following the judgment, the victim’s family is now free to file and claim the sum from the car owner, who was also riding in the vehicle at the time of the tragedy.
