NEW DELHI: The Supreme Court on Friday refused to extend cars and two-wheelers third-party insurance cover from September 1. A bench of Justices Madan B Lokur and S Abdul Nazeer dismissed a petition filed by the General Insurance Council, which had sought an extension of the deadline. The current insurance cover period is one year.
The apex court had on July 20 this year said that third-party insurance cover for new cars should mandatorily be for a period of three years and for two wheelers, it should be for five years. Currently, the insurance cover period is one year.
Most of the general insurers dealing in motor insurance had filed long MTP cover with the Insurance Regulatory and Development Authority of India (IRDAI) for approval. Sources said most of the companies would have such policies to offer from September 1.
Bajaj Allianz General Insurance sources said the company would be rolling out both comprehensive and bundled motor insurance policies from September 1.
Industry sources said less than 45 percent of bikes and scooters are insured while only about 70 percent cars are insured. According to the Motor Vehicles Act, all vehicles running on Indian roads are mandatorily required to buy third-party motor insurance.