Hearing a Public Interest Litigation requesting guidelines for improving the road safety recently, the Supreme Court has ordered that there should be mandatory third party insurance cover of 3 years for new cars and 5 years for new two-wheelers to be sold from September 1, 2018.
The Supreme Court has given this direction implementing the recommendations given by the Supreme Court Committee on Road Safety. Concerned over the problems faced by the people due to lack of insurance cover for vehicles, the committee in its detailed report had directed all general insurance companies to provide 3 years third party insurance cover for new cars and 5 years third party insurance cover for new two-wheelers.
Further, Insurance Regulatory and Development Authority (IRDA) was directed to make sure that all general insurance companies provide the third party insurance cover to those who request for it through online channels, renew the third party insurance cover and ensure its easy availability as well as connect with police authorities to solve any issue related to third party insurance cover.
The Committee had also pointed out that out of 18 crore vehicles, only 6 crore vehicles have the mandatory insurance cover. This means that 66% of vehicles are running without any third party insurance cover.