Chennai: The Madras High Court order made a five-year bumper-to-bumper insurance for all new vehicles starting September 1, detained by the court on Wednesday.
Justice S Vaidyanathan, who passed the order last week, saved it in a delay after the insurance company filed a memo who said that they needed at least three months to design new insurance products according to the direction of the court.
Meanwhile, Commissioner Joint Transport, a Muthu, has directed all regional transportation offices (RTO) throughout Tamil Nadu to register any vehicle without the protection of bumper-to-bumper insurance, as directed by the High Court.
This uncertainty over this new insurance rule forced the Tamil Nadu car dealer to place documentation works related to registration of vehicles detained.
Car dealers and insurance companies are wondering how orders can be implemented without consulting with the Indian Insurance Supervisory Authority (Irdai), a government agency that oversees the insurance sector.
“Because there is no clarity about how to resolve the number of insurance premiums, we do not prepare an insurance certificate today (Wednesday).
We will meet with the State Transport Authority and ask them to reverse the previous order” said S Rajvel, State Chairpresson.
Federation of Automobile Dealer Association (Fada).
“Usually, car dealers carry new vehicles to RTOS only after preparing insurance certificates.
It takes two or three days for them (from the invoice date) to complete this insurance documentation.
So, all new vehicles, who arrived today in RTOS., For sale, sold to Customers before the time limit of the September High Court 1.
New insurance rules do not apply to one of these vehicles.
Therefore, it is a regular business in most RTOS cities, “said Chennai RTO, asking for anonymity.