Mandatory to have 3rd party insurance cover; SC refuses to extend deadline

From Saturday, it would become mandatory for new cars and two-wheelers to have third-party insurance cover of three and five years respectively, with the Supreme Court on Friday refusing to extend the September 1 deadline. A bench of Justices Madan B Lokur and S Abdul Nazeer dismissed an application filed by General Insurance Council (GIC), constituted under provision of the Insurance Act 1938 by Insurance Regulatory and Development Authority (IRDA), seeking extension of the deadline fixed by the top court. The apex court had on July 20 this year said that third-party insurance cover for new cars should mandatorily be for a period of three years and for two wheelers, it should be for five years. Currently, the insurance cover period is one year. The court had then directed that the decision be implemented from September 1.