Now Reading: SC raises mandatory new-vehicle insurance cover by one year
-
01
SC raises mandatory new-vehicle insurance cover by one year
The Supreme Court has extended mandatory third-party insurance for new vehicles by one year. New cars will now require four years of cover, while new two-wheelers will require six years at purchase…
The Story in Brief
The Supreme Court has extended mandatory third-party insurance for new vehicles by one year. New cars will now require four years of cover, while new two-wheelers will require six years at purchase or registration. The earlier requirements were three years for cars and five years for two-wheelers. The court said many vehicles still use roads without valid third-party insurance, leaving accident victims and families struggling to secure compensation.
Third-party insurance covers liability for injury, death or property damage to others, but not damage to the owner’s vehicle. Owners can buy comprehensive cover, or add a standalone own-damage policy during an existing long-term third-party policy. The Supreme Court also directed state police to speed up documents and notices in older motor accident claims. The matter will be reviewed on 18 August.
The Indian Opinion
The exaggerated claim that buyers must accept insurance sold by dealers is wrong. They can compare insurers and buy online, but third-party cover is compulsory before driving on public roads. The opposite shortcut is also risky: calling third-party insurance “full protection” ignores theft, floods and damage to one’s own vehicle. The practical test is simple: check the policy’s own-damage terms, exclusions and expiry date before delivery, rather than relying on showroom assurances.
Source: livemint.com
This story was synthesised by AI from the source linked above.
