'Bumper-to-bumper' insurance: HC order to make cars costly, say experts

If the order is implemented, it will lead to an increase in the insurance outgo for car owners by a minimum Rs 50,000 for car and a minimum of Rs 7,000 for two-wheeler owners

The Madras High Court’s ruling mandating bumper-to-bumper cover for all new private cars sold from September 1 has got auto dealers, insurers and the law fraternity in a tizzy.
 
If the court’s directive is implemented in letter and spirit, it will most likely increase the acquisition cost of new cars from September 1, just ahead of the festive season. This is when there is a lot of demand in the market for new cars.
 
In a written order, high court Judge S. Vaidyanathan said, “..this court directs that whenever a new vehicle is sold after 1.9.2021, it is