New Delhi: The Supreme Court on Friday said that auto companies can not sell four-wheelers and two-wheelers from September 1 in the country without a mandatory third party insurance for a period of two years and five years respectively.
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. There are some 66 percent vehicles which don’t have third party insurance.
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 can 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