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Madras HC puts order on bumper-to-bumper cover for new vehicles on hold

Will hear the General Insurance Council on September 13

The motor insurance segment saw a contraction in FY21 due to lower new vehicle sales because of the pandemic .
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The high court has issued notices to GI Council and the insurance regulator and will hear them on September 13.

Subrata Panda Mumbai
The Madras High Court on Wednesday has put its order mandating bumper-to-bumper cover for new vehicles sold from September 1 in abeyance for the time being. It has adjourned the matter to September 13 when it will hear the General Insurance Council (GI Council), which had moved the court last week, seeking some clarifications on the order.

The council has asked the court to grant the insurance companies 90 days time to effect changes in the computer system after due approval from the insurance regulator.

Sources aware of the development said, “The GI Council wants to clarify what the court