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No insurance policy to comply with Madras HC order on 5 yr bumper to bumper cover

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Suspense continues on whether vehicle buyers will have to shell out a huge amount towards insurance premium upfront for five years from Wednesday onwards to comply with the Madras High Court order.

As things stand now, new car buyers in Tamil Nadu from Wednesday onwards, have to pay huge sums as premium for five years.

It is learnt the industry lobby body, General Insurance Council is exploring various options including legal ones to wriggle out of the situation.

But where is the policy is the question?

“The IRDAI (Insurance Regulatory and Development Authority of India) has to approve such a product first. There is no five-year bumper-to-bumper car vehicle insurance policy,” Saharsh Damani, CEO, Federation of Automobile Dealers Associations (FADA) told IANS.

Non-insurance industry officials told IANS, none of the insurers have a five year bumper-to-bumper insurance policy for cars and two wheelers.

Such a product has to be designed after doing actuarial calculations.

Industry officials starting from the sectoral regulator IRDAI and the insurers are keeping mum on the issue though claiming to serve the interests of the insuring public.

Recently, the Madras High Court by an order made the costly bumper-to-bumper insurance cover compulsory for all new private cars sold from September 1, 2021.

The court also ordered circulation of the judgement by the Additional Chief Secretary, Transport Department, Chennai, to all the insurers and the said officers must ensure that the above direction is followed scrupulously in letter and spirit without any deviation.

“Why should the insurers issue any instructions. They will be happy if the order is implemented as they will get lump sum premium income upfront,” an insurance intermediary not wanting to be quoted told IANS.

The headless IRDAI has not issued any public notice/guidance in this regard.

The Tamil Nadu government is also silent on this aspect as the court had ordered the circulation of its order to Additional Secretary, Transport Department.

“We have not got any circular from the head office in this regard,” an official of a public sector general insurer told IANS preferring anonymity.

The court posted the matter for September 30 for reporting compliance.

“The insurers will be silent as the court had not ordered them. It is for the IRDAI to issue necessary instructions making personal accident insurance cover for occupants of a private car and the pillion riders of two wheelers compulsory. Now it is optional,” Americai V. Narayanan, Chairman, ICM Insurance Brokers Pvt Ltd told IANS.

Narayanan said the bumper-to-bumper insurance cover will cost more than the comprehensive insurance cover as the claims under the former will be settled on replacement cost basis while under the latter depreciation will be applied on the component cost.

Vehicle insurance policies are two parts — own damage (insurance for the vehicle against damage, theft) and third party liability (liability for third parties).

The third party insurance cover is mandatory whereas the insurance cover for vehicle damage is not mandatory.

The Madras High Court order is for making insurance cover for vehicles mandatory.

“It is a patently untenable order (court’s order) and would not stand legal scrutiny if the vehicle makers or any other aggrieved party goes on appeal,” D. Varadarajan, a Supreme Court advocate specialising in company/competition/insurance laws, told IANS.

Commenting on the lack of awareness on the part of car owners about the liability for occupants of the car the court while hearing a case ordered: “Therefore, this court directs that whenever a new vehicle is sold after 01.09.2021, it is mandatory for coverage of bumper-to-bumper insurance every year, in addition to covering the driver, passengers and owner of the vehicle, for a period of five years.”

“Thereafter, the owner of the vehicle must be cautious in safeguarding the interest of driver, passengers, third parties and himself/herself, so as to avoid unnecessary liability being foisted on the owner of the vehicle, as beyond five years, as on date there is no provision to extend the bumper-to-bumper policy, due to its non-availability,” the court ordered.

Business

GMR Airports piles up Rs 253 crore loss in January-March quarter

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New Delhi, May 23: GMR Airports on Friday reported an increase in its consolidated loss to Rs 253 crore for the January-March quarter of 2024-25, even as the company’s total income increased during this period.

The company had made a loss of Rs 168 crore in the same quarter of the previous year.

GMR Airports said in a regulatory filing that its total income rose to Rs 2,977 crore in the fourth quarter of 2024-25 from Rs 2,570 crore in the year-ago period.

During the fourth quarter, EBITDA stood at Rs 1,122.74 crore in the March quarter 2025, registering a growth of 19.39 per cent YoY.

Total expenses shot up 13.73 per cent year-on-year to Rs 1,854.02 crore in the quarter ended March 31, 2025. Cost of materials consumed stood at Rs 42.80 crore, employee benefits expenses were at Rs 393.52 crore, and other expenses were at Rs 586.63 crore in Q4 FY25

For the full financial year 2024-25, the company’s loss worked out to Rs 817 crore compared to the loss of Rs 829 crore in the same period a year ago.

GMR Airports Ltd (GAL) operates the Delhi, Hyderabad, and Mopa (Goa) airports. Besides, it is developing the Bhogapuram Airport in Andhra Pradesh.

“Total passenger traffic at GAL-owned airports increased by 9 per cent year-on-year, 31.5 million in Q4 FY25, and 9 per cent year-on-year to 120.5 million in FY25,” the regulatory filing said.

GAL is also operating Medan Airport in Indonesia and developing Crete Airport in Greece as part of its overseas ventures.

GAL said the tariff order issued by regulator AERA for the fourth control period ending March 31, 2029, would significantly improve the aero revenue of its operations at the Delhi airport, which in turn would lead to an increase in the overall profitability and cash flow generation at DIAL and the company.

The tariff order came into effect on April 16, 2025.

“The financials of DIAL and GAL would have been better, had this order been issued during FY25,” the filing said.

The GAL share prices fell over 2 per cent to Rs 87.08 apiece in late afternoon trade on BSE.

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SC dismisses plea seeking action against Maha officials over protocol lapse during CJI’s first visit

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New Delhi, May 23: The Supreme Court on Friday dismissed a petition seeking action against Maharashtra government officials over protocol lapses during Chief Justice of India (CJI) B.R. Gavai’s first visit to the state on May 18 after taking over the country’s highest judicial post.

A bench of CJI Gavai and Justice A.G. Masih opined that the plea was filed with an intent to obtain “cheap publicity” and termed it a “publicity interest litigation”.

The bench refrained from imposing exemplary costs but asked the PIL litigant to deposit a cost of Rs 7,000.

In its order, the apex court said that soon after CJI Gavai expressed displeasure over the protocol lapse, senior Maharashtra government officials, including the Chief Secretary, came to meet him and expressed regret.

The top court, in a press statement released on Tuesday, said that CJI Gavai stressed that a “trivial issue should not be blown out of proportion” and requested everyone that “the matter be given a quietus”.

Following his taking oath as the 52nd CJI, Justice Gavai on Sunday (May 18) travelled to Mumbai for a felicitation programme by the Bar Council of Maharashtra and Goa. “If the Chief Justice of India is visiting Maharashtra for the first time, and the state’s Chief Secretary, the Director General of Police, and the Mumbai Police Commissioner don’t feel it appropriate to be present, then they need to reflect on that. There’s nothing new about the protocol — it’s a matter of respect from one constitutional institution to another,” the CJI said.

“It’s a question of respect by the other organs of the institution to the judiciary,” he added.

The three pillars of democracy — the judiciary, the legislature, and the executive — are equal, and every organ of the Constitution must reciprocate and show respect to the other, he had said. Following the episode, the Maharashtra government issued protocol guidelines to ensure adherence to official decorum during the visit of the Chief Justice of India to Mumbai and other parts of the state. It designated the CJI as a Permanent State Guest in Maharashtra under the State Guest Rules, 2004. Accordingly, the Chief Justice of India will continue to be entitled to all protocol-related facilities, including accommodation, vehicle arrangements, and security throughout the state during visits.

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Lahore ATC refused to help IndiGo flight stuck in hailstorm danger

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New Delhi, May 23: The pilots of the IndiGo plane, which was damaged in rough weather en route to Srinagar, were denied permission by the Lahore ATC to venture briefly into Pakistan airspace to escape the hailstorm, in complete violation of humanitarian norms.

India’s civil aviation regulator, the DGCA, said the aircraft was cruising at an altitude of approximately 36,000 feet near Punjab’s Pathankot when it ran into a thunderstorm and hailstorm.

Experiencing severe turbulence, the crew first requested the Northern ATC of the Indian Air Force to allow the flight to deviate towards the International Border. However, the request was denied because it was felt that the plane would face danger from the Pakistan side due to the recently witnessed intense hostilities between India and the neighbouring country during Operation Sindoor.

The pilot then sought permission from the Lahore air traffic control (ATC) to briefly venture into Pakistani airspace to avoid the storm. But it was refused, too.

With limited options left, the pilot initially considered returning to Delhi. However, since the aircraft was close to the “thunderstorm cloud”, returning was considered an unsafe option. The pilot then decided to continue forward through the storm towards Srinagar on the shortest possible route, the DGCA statement said.

While navigating the thunderstorm, the aircraft encountered “extreme updrafts and downdrafts”, leading to the autopilot disengaging and its speed fluctuating.

“While in the thunderstorm cloud, warnings of an angle of attack fault, alternate saw protection lost, and unreliable airspeed indications were triggered,” the statement further said.

The DGCA said that at one point, the aircraft’s rate of descent reached 8,500 feet per minute. It further said that the crew took manual control of the aircraft during this critical phase till exiting the hailstorm.

The pilot then declared an emergency to the Srinagar ATC, which then activated radar vectors. The flight eventually landed safely in Srinagar with no reported injuries to any of the passengers or crew.

The DGCA said that the plane made a safe landing with the auto thrust system operated manually.

There was no injury to any of the passengers on board the flight. A post-flight check revealed damage to the nose of the aircraft. A full-fledged investigation has been launched into the incident, the statement added.

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