Bumper-to-bumper insurance becomes mandatory for new vehicle, know everything about it

Under bumper to bumper insurance, when the car gets into an accident, the car suffers a lot of damage. In such a situation, the biggest feature of this insurance is that in this, every part of the vehicle that has been damaged is paid.

New Delhi. In an important order, the Madras High Court has ruled that from September 1, whenever a new vehicle is sold, its bumper-to-bumper insurance should be mandatory. This insurance will be in addition to the insurance covering the driver, passenger and owner of the vehicle for a period of 5 years.

Justice S Vaidyanathan has recently said in his order that after this period the owner of the vehicle should be careful in protecting the interests of the driver, passenger and third party as well as himself. So that there is no unnecessary burden on them. This is because bumper-to-bumper insurance cannot be extended for more than five years. Let us tell you that in bumper-to-bumper insurance, those parts of the vehicle will also be covered in which insurance companies generally do not cover.

Therefore, the High Court gave the decision – He allowed a writ petition of New India Assurance Company Limited challenging the order of 7 December 2019 of the Motor Accident Claims Tribunal of the Special District Court at Erode. The insurance company stated that the insurance policy in question was only for damage caused to the vehicle by a third party and not by the occupants of the vehicle. The insurance company argued that the coverage can be increased if the car owner pays additional premium.

The judge said that it is sad that when a vehicle is sold, the buyer is not clearly informed about the terms of the policy and its importance. Similarly, while buying a vehicle, the buyer is also not interested in understanding the terms and conditions of the policy thoroughly, as he is more concerned about the performance of the vehicle and not the policy.

When the customer is ready to spend a huge amount to buy a vehicle, it is surprising to know why he is not interested in spending a small amount to buy a policy for the safety of himself or others.

What is bumper-to-bumper insurance – Under bumper-to-bumper insurance, when the car gets into an accident, the car suffers a lot of damage. In such a situation, the biggest feature of this insurance is that in this, every part of the vehicle that has been damaged is paid. No matter how small that part may be. Overall, 100% cover is available under bumper to bumper insurance.