Supreme Court raises third-party insurance period for new vehicles, Pg12

Key Highlights:

• The Supreme Court has extended the mandatory third-party motor insurance coverage period for new vehicles.
• New cars will now require four years of third-party insurance, up from the previous three years.
• New two-wheelers will need six years of coverage, increased from the earlier five years.
• The decision aims to address the high number of vehicles plying without valid third-party insurance, impacting accident victims.

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Detailed Insights:

• The Supreme Court observed a "shocking" number of vehicles operating without third-party insurance despite statutory mandates.
• This ruling enhances the period previously set in the 2018 judgment in the S. Rajaseekaran v. Union of India case.
• The court directed the Insurance Regulatory and Development Authority of India (IRDAI) to issue necessary directions immediately.
• It also mandated the integration of Automatic Number Plate Recognition (ANPR) cameras with insurance data from the Insurance Information Bureau of India (IIB) and vehicle registration data from the VAHAN portal.
• State police personnel are to be equipped with mobile applications linked to IIB and VAHAN for real-time insurance verification and challan issuance.
• The Supreme Court proposed denying fuel at petrol pumps to vehicles without valid insurance to enforce compliance.
• The ruling came while dismissing an appeal by an insurance company, emphasizing that courts should not adopt a "hyper-technical approach" in motor accident claims.

Key Concepts Involved:

• Third-Party Insurance: Mandatory insurance covering damage or injury caused to a third party by the insured vehicle.
• IRDAI: The statutory body regulating and promoting the insurance and re-insurance industries in India.
• VAHAN: A national vehicle registry system under the Ministry of Road Transport and Highways that stores vehicle registration data.
• Insurance Information Bureau of India (IIB): An organization that collects and disseminates data related to motor insurance claims and policies.