Day by day road accidents are increasing despite creating so much awareness in the country but the government is also taking major steps for a solution. This rule applies to all new vehicles that are to be sold after September 1, 2018. The judgment was given by the justices, MB Lokur and Deepak Gupta. The decision taken by the Supreme Court will be hugely beneficial for road accident victims, as they can now claim for compensation directly from insurance companies. No need to chase the owner of the offending vehicle to get compensation anymore.
Supreme Court has also ordered the Insurance Regulatory and Development Authority (IRDA) to give approval for the insurance product being developed by the General Insurance Council (GIC). GIC had requested for more time to prepare a proper policy, but the request was declined by the Supreme Court.
Court has directed the insurance companies to provide third-party insurance as a single product. An earlier practice of offering third-party insurance as a part of a comprehensive policy will now not be offered. The decision was taken on recommendations of a court-appointed panel for road safety, which is led by the former SC judge justice KS Radhakrishnan.
Road users involved in an accident are unable to claim adequate compensation because a large number of cars and two-wheelers are not insured for mandatory third party insurance. The new order is being implemented from 1st September; the offering needs regulatory approval for timely implementation
The panel highlighted the fact that around 12 crore vehicles were uninsured in India. That is around 66 % of the total 18 crore registered vehicles in the country.
Supreme Court has also shown concerns about accidents that are caused by potholes on roads. The court has ordered the Road Safety Panel to form a mechanism that could be used to compensate people who are killed in pothole-related accidents