Automobile dealers ‘relieved’

Dealers of two-wheelers and four-wheelers in the region have heaved a sigh of relief over the latest High Court order on withdrawal of the five-year ‘bumper-to-bumper’ insurance that was earlier made

Dealers of two-wheelers and four-wheelers in the region have heaved a sigh of relief over the latest High Court order on withdrawal of the five-year ‘bumper-to-bumper’ insurance that was earlier made mandatory for vehicle registrations with effect from the start of this month.

Till last month, the one-year policy had meant payment of premium of around three % of the car value. There were concerns among the dealers that the new insurance plan would impact the sales figures during the festival season. The dealers were worried about the increase in upfront cost on account of coverage of the driver, passengers and owner of the vehicle, besides the third-party cover for five-years.

Now that the High Court has ruled that ‘the order dated August 4, 2021, mandating the coverage of bumper to bumper policy may not be logistically and economically feasible for effective implementation in the present legal dispensation,” the automobile dealers are a relieved lot, a senior Transport department official said.