Tamil Nadu will ensure that bumper-to-bumper insurance coverage is implemented for all vehicles sold in the state from Wednesday. The Joint Commissioner for Transport issued a circular on Tuesday to implement an order passed by Madras High Court Justice S Vaidyanathan to ensure that bumper-to-bumper insurance cover was provided for vehicles with engine sold from Wednesday.
The circular to area agents and regional transport agents stated that whenever new vehicles were sold after September 1, 2021, bumper-to-bumper insurance coverage each year was mandatory, in addition to covering the driver, passengers and vehicle owner for a period of five years.
All Registration Authorities and Deputy Registration Authorities have been advised that the order of the Madras High Court must be strictly followed without any waivers.
The necessary instructions should be passed on to all insurance companies and dealers in their jurisdiction. At the time of registration, all motor vehicle inspectors must check the certificate of insurance to ensure that it complies with the High Court order without any deviations, the circular says.
Judge Vaidyanathan, in an order last week, said whenever a new vehicle is sold after September 1, it is mandatory for bumper-to-bumper insurance coverage each year, in addition to covering the driver, passengers and owners of the vehicle, for a period of five years.
The order was on an appeal filed by The New India Assurance challenging an award dated December 7, 2019, passed by the Motor Accident Claims Tribunal, Special District Judge, Erode, ordering the appellant/company to insurance to pay claimants a sum of Rs 14.65 lakh as compensation for the death of deceased Sadayappan @ Dhanapal due to the accident which occurred on August 3, 2016.