3rd-party auto insurance must from September

Starting September 1, automobile companies in the country will not be allowed to sell four-wheelers and two-wheelers without a mandatory third-party insurance for a period of two years and five years, respectively, the Supreme Court said on Friday.

Amicus Curiae Gaurav Agarwal said that the third-party insurance is provided when bikes or cars are brought for the first time. But they are not carried over the following year. Nearly 66 percent vehicles don’t have third party insurance, he said.

Insurance companies contended that it was not possible to take-third party insurance sum for 20 years at one go. Later, a committee referred that third-party car insurance could be extended for three years and five 
years for two wheelers or motorcycles.

The Central government on the other hand contended that people are usually not keen to take third party insurance because it pushes up the insurance premium of their vehicles.

The top court also directed the Road Safety Panel to look at charting a compensation model for next of kin of pothole victims.

2 yrs for cars, 5 yrs for two-wheelers

• Third party insurance must for sale of four-wheelers and 2-wheelers for two years and five years respectively.
• Under such insurance, user is covered against damages or losses caused by him/herself or a 3rd party.