Madras HC moots lifetime vehicle insurance premium

There is no agency to check policies and onetime payment avoids disputes in accident claims

GN Bureau | February 19, 2015


#motor   #vehicle   #insurance   #madras   #high court   #chennai  

Are you ready to pay lifetime insurance premium for your vehicle at one go?  Most of you may say yes as it saves yearly hassle. The Madras High Court has observed that vehicle-owners be made to pay lifetime insurance, like the lifetime road tax.

Justice N. Kirubakaran of the high court said that when a huge sum was spent on purchasing a vehicle, there should not be a problem to pay a few more thousands as lifetime insurance premium. “Like lifetime road tax, owners should be made to pay the insurance coverage mandatorily for lifetime, in respect of their vehicles, so that these kinds of dispute can be avoided,” the judge observed.

According to Section 146 of the Motor Vehicles Act, no person should use a vehicle in a public place without an insurance coverage.

To find out the feasibility of such lifetime insurance premium payment the judge impleaded suo motu IRDA, Ministry of Law, Justice and Company Affairs, Ministry of Road and Surface Transport, State Secretary Transport Department, DGP as respondents and issued notice to reply to 10 queries including number of vehicles registered in India, how many have not renewed policies and whether it was a fact that almost one third vehicles do not have subsisting mandatory act policies.

While hearing a petition filed by Oriental Insurance Company the judge said that there was no mechanism either with the Transport Department or the police to verify whether a policy was renewed or not, to enable them to seize vehicles in the event of default, the court said.

The case will be heard on March 4, 2015.  The current case relates to an accident on January 30, 2012 in Ponneri in which a motorbike was hit from the rear by a tanker lorry, resulting in injuries to the rider, requiring 17 days hospitalisation. The Tribunal, considering the nature of injuries, fixed it at 45 per cent and awarded Rs 2,24,500 against his claim for Rs 3 lakh.

The insurance firm challenged it, stating there was no insurance coverage as on date of accident to the lorry, which expired on November 17 2011. It occurred only on January 30, 2012 and therefore liability should not have been 'fastened' on them.

Justice Kirubakaran while granting conditional interim stay directed the firm to deposit the award by the Tribunal within two weeks together with interest.

Comments

 

Other News

Look who’s talking ethics in Karnataka?

 Just after the UP assembly election in 1996, I was among the scores of reporters waiting at Kalyan Singh’s residence, waiting to get the first inkling of the future course of the BJP. The party had secured the maximum seats – 174 out of 425 seats – but was short of the majority mark

Company secretaries are gatekeepers of corporate governance: SEBI Chairman

“Company Secretaries, once known as secretaries to the board and management, have transformed themselves into key managerial and governance professionals. Today they are recognised for their importance on corporate landscape and have become gatekeepers of corporate governance,” said Ajay Tyagi,

Will there be light at the end of the tunnel?

Any good news which promises to bring about qualitative improvement in the lives of people, especially in rural India, is always welcome. It was heartening indeed to learn that every single village in the country now has access to electricity, as announced by the prime minister on April 29. This is most ce

A dry run in Bundelkhand

The paved road, the few concrete houses and men on motorcycles – these are deceptive signs of development in Madralalpur village. Only a couple of weeks ago, Babu, a 47-year-old distressed farmer, had hanged himself from a babool tree. Villagers were gathered at his house as his wife, mother, sister-

Our jobs, their jobs

Statistics has come a long way from the time when British prime minister Benjamin Disraeli observed: “There are three kinds of lies: lies, damned lies, and statistics.” Statistics is now an accredited branch of applied mathematics; statistical methods are routinely used to prove or disprove the

Why hasty ordinance on rape of minors needs gender balance

Of all offences, it’s the crime of rape that fires public sentiment the most, eliciting an outrage that exceeds the seemingly worst felony of all – murder too. It has probably more to do with the offence and associated gory details staying, even being replayed ruthlessly, in memory with continu

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter