te Car insurance: BIG decision! Madras High Court mandates OWN DAMAGE coverage for vehicles from September 1- details here | Zee Business

Car insurance: BIG decision! Madras High Court mandates OWN DAMAGE coverage for vehicles from September 1- details here

The Madras High Court has mandated own damage coverage for cars from September 1, 2021. Now, the car owners will have to pay a huge amount for own damage premium instead of third party premium.

Car insurance: BIG decision! Madras High Court mandates OWN DAMAGE coverage for vehicles from September 1- details here
Madras High Court mandates own damage coverage for vehicles from September 1. Image source: ANI

The Madras High Court has made a big decision related to insurance of vehicles on Thursday, August 26, 2021. The court has ruled that "bumper-to-bumper" insurance should be mandatory whenever a new vehicle is sold, from September 1. Bumper-to-bumper insurance coverage refers to own damage coverage.

As per the information, till now, third party insurance coverage was also necessary for vehicles. This decision of the court is also a big news for the general insurance companies as they will benefit a lot due to increase in own damage premium.

 

TRENDING NOW

See Zee Business Live TV Streaming Below:

Now, the car owners will have to pay a huge sum of amount for own damage premium instead of third party premium.

The bumper-to-bumper insurance must be in addition to covering the driver, passengers and owner of the vehicle, for a period of five years, as per a report by PTI.

 

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, as beyond five years, as on date there is no provision to extend the bumper to bumper policy, due to its non-availability, Justice S Vaidyanathan said in a recent order, as per the PTI report.

It can be noted that third-party insurance is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.

Reported By: Anurag Shah
Written By: ZeeBiz WebTeam
Edited By: Ravi Kant Kumar
Updated: Thu, Aug 26, 2021
04:11 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Things to consider before buying car insurance in India; check these key points Things to consider before buying car insurance in India; check these key points
Motor insurance: Types of coverage plans, add-ons that vehicle owners should opt for during monsoon season Motor insurance: Types of coverage plans, add-ons that vehicle owners should opt for during monsoon season
Protect your vehicle from heavy rain, floods: Here’s why you should opt for engine protection add-on in car insurance Protect your vehicle from heavy rain, floods: Here’s why you should opt for engine protection add-on in car insurance
Third-party motor insurance for FY 2023-24: Check premiums for cars, bikes and two-wheelers Third-party motor insurance for FY 2023-24: Check premiums for cars, bikes and two-wheelers
How to lower your motor insurance premium? — Third party, comprehensive and pay-as-you-drive policy explained How to lower your motor insurance premium? — Third party, comprehensive and pay-as-you-drive policy explained

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x