Page 56 - The Insurance Times August 2024

make the last payment when the policy matured. He was Motor Cars Rules, 1989 and the Motor Vehicles Act, 1988
told to contact the insurance company by the bank, which apply to electric cars. The court emphasized the need for
assured him that the money would be credited to his insurance coverage, helmets, and registration for electric
account automatically. vehicles. Advocate Rajat Kapoor filed a PIL to require
insurance coverage for all electric vehicles, but the court
The complaint, nevertheless, never got the money.
Afterwards, he discovered that the insurance firm had given dismissed it. The court emphasized that battery criteria for
the bank a cheque for Rs. 46,645; however, the bank denied battery-operated vehicles have been established by the
receiving it. The complainant, who felt wronged, brought a Union Government and advised the Delhi Government to
consumer complaint to Gurdaspur, Punjab's District ensure proper financial assistance is distributed. The court
Consumer Disputes Redressal Commission (the "District emphasized the need for specific laws for electric vehicles
Commission"). due to the rise of new businesses and increased demand.
The Bank was sued ex parte as it failed to show up before About the case
the District Commission. The Insurance Company, on the other The Delhi High Court has made it clear that rules under the
hand, refuted the complainant's accusations and contended Central Motor cars Rules, 1989 and the Motor Vehicles Act,
that the complainant had bought the insurance policy with a 1988 that are pertinent to electric cars also apply to them.
five-year premium-paying period. They said that the complaint Chief Justice Satish Chandra Sharma and Justice
was without merit because the complainant had previously Subramonium Prasad, sitting on a division bench, declared
received a cheque for the matured amount, which he had that e-bikes must have insurance coverage and that riders
cashed through Axis Bank (Amritsar).The insurance company's must wear helmets or other protective gear. They also
argument that they had already sent out a cheque for the stated that electric vehicles must be registered and subject
specified amount was rejected by the District Commission, to the same legal penalties as other vehicles.
which also pointed out that the company had not produced In order to require insurance coverage for all electric
any statement of account or hard copy proof that the vehicles, especially two- and three-wheelers, before they
complainant had actually cashed the cheque or verified that
are given to the owner-purchaser and put on the road,
the complainant had an account with Axis Bank in Amritsar. Advocate Rajat Kapoor filed a PIL, which the court dismissed.
The complaint, on the other hand, produced a statement of
account held with the Bank, which amply demonstrated that The court pointed out that criteria for batteries used in
the cash had not been received and suggested that the battery-operated or electric vehicles have previously been
cheque had most likely been misused. The Bank and the established by the Union Government and must be adhered
Insurance Company were instructed to inquire on the same to by manufacturers. As a result, it gave the Delhi
by the District Commission. Government instructions to keep making sure that the
financial assistance it provides for electric vehicles
The District Commission came to the conclusion that there was
a failure in service since the Bank and the Insurance Company registered in the nation's capital is properly and promptly
had not paid the sum of Rs. 46,645/-based on the facts and distributed. The court dismissed the plea, noting that
information provided. As a result, the District Commission found Kapoor's assertions, charges, and issues were "largely
in the complainant's favor and ordered the Bank and the unsubstantiated" and that the PIL had only been filed based
Insurance Company to reimburse the plaintiff for mental on two news reports.The panel gave Kapoor advice and
suffering, harassment, and legal expenses in addition to the expressed its hope that he would take the appropriate care
outstanding sum of Rs. 46,645/-plus interest. and caution before bringing such PILs in the future.According
to the petition, there are a lot of electric cars on the road,
and the absence of regulations governing their insurance is
Helmet, Relevant Motor Vehicles Act
going to lead to a "situation of havoc" in the near future.
Provisions Applicable, Insurance Cover
In this context, reference was made to Motor Vehicles Act
Required Even For Electric Vehicles: of 1988, Section 146, which mandates insurance for all
Delhi High Court. motor vehicles, including electric vehicles.It went on to say
that there is an immediate need for appropriate law "that
Rajat Kapoor v. Union of India & Anr. deals specifically with electric vehicles," including two-
wheelers and four-wheelers, due to the rise of several new
Summary businesses that cater only to electric vehicles and the spike
The Delhi High Court has ruled that rules under the Central in demand.

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