Bumper to Bumper insurance Cover Compulsory Says Madras High Court

Registration of new cars might come to a screeching halt on Wednesday in Tamil Nadu with the State Transport Department directing Regional Transport Officers (RTO) as well as others in order to ensure the vehicles are covered under the bumper to bumper insurance for 5 years.

The Transport Department has also directed the vehicle registering authorities to ensure that the owner, as well as the driver and the passengers are covered under the Accident insurance.

It is issued the directive to comply with the recent Madras High Court order.

Is there any such policy is the moot question?

Non-insurance Industry officials has stated, that none of the insurers have a 5 year bumper to bumper insurance for both cars as well as 2 wheelers.

Such a product has to be designed after doing actual calculations.

. Federation of Automobile Dealers Association, (FADA) CEO Saharsh Damani had said that, the IRDAI (Insurance Regulatory and Development Authority of India) has to approve such as product first. There exists no five year bumper to bumper car vehicle insurance policy.

The Madras Higourt has made bumper to bumper insurance cover compulsory for all new private cars sold starting from 1st September.