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No lockdown relief to pay vehicle insurance premium

The Madras High Court on Monday dismissed as frivolous a public interest litigation petition that sought the Insurance Regulatory and Development Authority (IRDA) to defer payment of insurance premium for all vehicles during the lockdown, as none of them were operated.

No lockdown relief to pay vehicle insurance premium
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Chennai

When the plea came before it for hearing, the first bench comprising Chief Justice Sanjib Banerjee and Justice Senthilkumar Ramamoorthy slammed it as utterly misconceived and said: “It’s an utterly frivolous matter complaining about the insurance regulator for not considering the special waiver, which was provided in respect of buses and trucks during the lockdown, for other vehicles.” 

Holding that there was no evidence to suggest that cars were all parked in the garage during the lockdown, the bench summarily dismissed the plea despite attempts by counsels appearing for Car and Taxi Owners’ Association seeking a direction to the insurance regulatory commission to consider their representations. 

The plea had sought for appropriate policy measures to provide relief to the insurance policyholders, who were unable to use their vehicles during the lockdown. The premiums collected should have been adjusted/ refunded to the policyholders across the country as was done globally, the plea said. 

IRDA had submitted that there could not be any uniform direction, as the contract between the insurer and the insured were individual in nature, and sought the court not to issue any omnibus direction.

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