PIL on Road Safety

By August 7, 2018 December 20th, 2019 No Comments

A PIL “seeking guidelines for improving road safety” was
filed by S. Rajaseekaran, Chairman & Head of Orthopedic Department, Ganga
Hospital, Coimbatore.

While considering the PIL, bench of Justice Madan B. Lokur
and Justice Deepak Gupta issued directions on the basis of the decisions taken
by the Supreme Court Committee on Road Safety, headed by former SC judge
Justice K.S. Radhakrishnan. The following is the order:

According to the bench as on March, 2018, it was
recorded that there are about 180 million vehicles plying on the road and only
about 60 million vehicles have the mandatory third party cover, which meant
that 66% of the vehicles were playing without third party insurance.

The Committee had detailed discussions with IRDA,
General Insurance Council, Ministry of Road Transport and Highways and
Department of Financial Services, Ministry of Finance, Government of India. On
the basis of the meeting, the Committee took the following decisions:-
1.    It shall be mandatory for all General Insurance
Companies to issue a three year third party insurance cover for new cars and
five year third party insurance cover for new two wheelers as a separate
product or as part of a comprehensive insurance product. IRDA should issue
instructions accordingly to all General Insurance Companies.
2.    The GIC and IRDA should ensure that the legacy
insurance data is also shared with MoRTH as soon as possible for its
integration with Vahan data.
3.    IRDA should ensure that all General Insurers
follow its directions dated 01.01.2018 advising them to make available the
third party insurance cover to all proposers on online channels; liaise with
police authorities to facilitate issue and renewal of third party insurance
cover and ensure its easy availability.
The Supreme Court passed an order stating: “We make it clear
that the third party insurance cover for new cars should mandatorily be for a
period of three years and for two-wheelers, it should mandatorily be for a
period of five years. This may be taken and treated as a separate product. We
leave it to the insurance companies to deal with comprehensive insurance
policies on a separate footing and it would be at the option of the owner of
the vehicle to decide which policy should be taken except that the third party
insurance is mandatory. The decision should be implemented from 1st September,
2018 on the policies sold”.

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