homeauto NewsNo sale of four wheelers without mandatory third party insurance for two years: SC

No sale of four-wheelers without mandatory third party insurance for two years: SC

From September 1 onwards, automobile companies in the country cannot sell four-wheelers and two-wheelers without a mandatory third party insurance for a period of two years and five years, Supreme Court said today.

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By Jomy Pullokaran  Jul 20, 2018 4:37:54 PM IST (Published)

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No sale of four-wheelers without mandatory third party insurance for two years: SC
From September 1 onwards, automobile companies in the country cannot sell four-wheelers and two-wheelers without a mandatory third party insurance for a period of two years and five years, Supreme Court said today.

In view of unsatisfactory third-party insurance offered to vehicles, the Supreme Court Committee on Road Safety has asked the Insurance Regulatory and Development Authority of India (IRDAI) to offer a mandatory three-year policy for cars and a five-year policy for motorbikes at the time of sale and registration.
The apex court also directed the Road Safety Panel to look at developing some form of compensation mechanism for next of kin of pothole victims.
Currently, maximum one-year comprehensive policy for car and three years comprehensive policy for two-wheelers can be offered by insurers.
The long-term policy for three years for car and five years for two-wheelers will be offered only for third party insurance and not for the comprehensive cover.

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