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The order was issued making third party insurance compulsory by the bench comprising Justice M.B. Lokur and Justice Deepak Gupta. The following order was issued while hearing the public interest litigation (PIL) filed by S. Rajaseekaran, regarding the improvement of road safety. The order of mandatory third-party insurance was taken on the ground of the decision rendered by the SC Committee on Road Safety, headed by former SC judge Justice K.S. Radhakrishnan. According to the committee, about 18 crore vehicles are running on the roads out of them only 6 crore vehicles have the third-party insurance cover, that clearly means only 66% vehicles are third party insured. After discussing the condition of the third-party insurance considering the persons who are a part of family of the road accident victim, the committee took the following decision:
The Court observed the decision of the committee and marked it as a reasonable step towards the road safety. Therefore, it stated in the order: the third-party insurance cover for new two-wheelers should mandatorily be for a period of five years and for new cars it should be fir three years. Whether to treat it as a separate product or comprehensive insurance policy, is entirely left in the hands of the insurance companies. The owner of the vehicle is given option to choose the insurance policy of his own choice, but third-party insurance is mandatory. The decision should be implemented from 1st September 2018 on the policies sold.
The court referred to the report of a newspaper regarding deaths caused by road accidents due to potholes. To the following report court remarked that the number of death caused by road accidents are more in number than that of in terrorist attacks. The court stated: the authorities concerned regarding the maintenance of roads is not doing their job properly. The result of which is faced by the victims and families of the victims of road accidents.
The SC Committee on road safety was issued direction to probe in the matter and present a report regarding the same.
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