Delhi High Court Issues Notice On Plea Seeking Mandatory Insurance Cover For Electric Bikes

The Delhi High Court has issued notice on a public interest litigation, seeking directions to make insurance cover compulsory for all electric vehicles, more particularly two wheelers and three wheelers, before they are delivered to the owner-purchaser and brought on road.

A Division Bench comprising Acting Chief Justice Vipin Sanghi and Justice Navin Chawla has issued notices to both Central and Delhi government and has sought their responses by October 20, the next date of hearing.

The plea has been filed by a practicing Advocate of the High Court, Rajat Kapoor, stating that a plethora of electric vehicles are running on roads and the lack of rules relating to insurance of such vehicles is likely to create a "situation of havoc" in coming days. Lack of Third party insurance will create a problem during payment of compensation to any victim of electric vehicle accident.

In this regard, reference is made to Section 146 of the Motor Vehicles Act, 1988 which makes insurance for Motor Vehicles compulsory. In this vein, the plea avers, "similar to the motor insurance policy for petrol and diesel vehicles, the EV vehicles insurance policy would offer financial protection to vehicles against liabilities such as accidental damage, fire, natural calamities, riots, theft of the insured vehicle and third-party injuries or damages to their property."

The plea goes on to aver that with the emergence of so many new companies which cater only to electric vehicles and the rush of high demand has created an urgent need of a proper legislation "that deals specifically with electric vehicles" both two wheelers and four wheelers.

Case Title: Rajat Kapoor v. Union of India & Anr.