Chennai: The Madras High Court today kept its order on mandatory bumper to bumper cover insurance in abeyance till 13 September, when it will hear the General Insurance Council (GI Council), which had moved the court last week, seeking some clarifications on the order.
The council has asked the court to grant the insurance companies 90 days time to effect changes in the computer system after due approval from the insurance regulator.
The matter will be heard next on 13 September afternoon as the court acknowledged the response of the council and government.
On 26 August, the Madras HC had issued orders to make bumper to bumper insurance mandatory including the driver, passengers and the owner of the vehicle should be provided cover for five years.
Automobile dealers and insurance companies wondered how the order could be implemented without consulting the Insurance Regulatory Authority of India (IRDAI), the government body which supervises the insurance sector.