Third party insurance for two and four-wheelers be made mandatory, says SC

Concerned over poor compliance of third party insurance of vehicles that puts all road users at risk, the Supreme Court on Friday said three-year insurance policy for four wheelers and five-year policy for two wheelers at the time of sale and registration should be made mandatory.

A bench of Justice Madan B. Lokur and Justice Deepak Gupta said that third party insurance for three and five years be made mandatory for four and two wheelers respectively so that victims of road accidents could get compensation.

"Third party insurance has to be mandatory," they said, reports IANS.

The Insurance Regulatory and Development Authority of India (IRDAI) however told the bench that third party insurance should not be made mandatory and the regulator was also looking into the issue and sought eight months time to decide on the issue.

Referring to the recommendations of the Supreme Court Committee on Road Safety, the bench said that over one lakh people were dying in India every year and three per minute in road accidents.

"You are looking at it from the point of insurance companies. Now, there are people who are dying and there are people who have already died in road accidents. Number of deaths in road accidents is more than one lakh per year in India. Three people are dying per minute in road accidents," the bench said.

"Look at it from human point of view and not from your commercial interest. Do it within a reasonable time of two-three weeks," the top court told IRDAI and asked it to take a decision on the issue on or before September 1.