Mandatory third party insurance makes vehicles dearer
As per the SC order, two-wheelers should get insurance for five years, cars for three years.pune Updated: Sep 01, 2018 16:54 IST
The dealers of two-wheelers and cars in Pune are gearing up for the first day of implementation of the Supreme Court’s direction that makes third party insurance mandatory for a minimum period of three years.
Two-wheelers should get the third party insurance for five years and cars should have the third party insurance for 3 years. This comes after the Supreme Court order dated July 20, 2018 that directed third party insurance cover for cars and two-wheelers for a period of three and five years respectively.
A letter from the ministry of road transport and highways of India in this regard states “This may be taken and treated as a separate product”. The letter is signed by Abhay Damble, joint secretary and has been issued on August 29, three days before the order comes into effect.
When asked about the ramification of non-compliance to do so, Vinod Sagre, assistant regional transport officer, said, “If customers do not get it done, we will not issue registration.”
BI Ajri, regional transport officer of Pune, had directed Sagre to call for a meeting on Friday evening with the RTO officials and vehicle dealers of the city. However, the dealers did not respond well due to the short notice. “We have to inform customers who approached us in the past few days about the new rule. When we tell them that insurance has to be taken for a minimum period of five years post September 1, some customers want us to register the vehicles before September 1.
“But given the number of vehicles for which we get passing done per month (and given the protocol involved) it is not possible for a dealership to manage it all in such a short notice,” said Bharat Thakkar, general manager at Century TVS showroom chain in Pune.
“We have been telling all our customers about the changed rules and the price of the vehicle. If the vehicle payment is done and the registration is done before August 31, the cost will not change. But if the order is placed and is scheduled for delivery later, the expenditure will increase for the customer,” said Eijaz Shaikh, assistant sales manager at Hyundai showroom in Camp. However, he also pointed out that the basic cost of vehicles is not changing and that the difference is purely due to third party insurance.
“The Supreme Court has further observed that it is on 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 letter from joint secretary Damle further reads. The registering as well as enforcement authorities were directed to ensure compliance of the apex court order.
First Published: Sep 01, 2018 16:53 IST