HC notice to Centre, regulator on plea for extending insurance to school buses

Chandigarh: The Punjab and Haryana high court on Monday issued notice to the Union government and the Insurance Regulatory and Development Authority of India (IRDA) on a plea seeking extension of insurance policies of school buses which could not operate this year on account of Covid-19 pandemic.

Justice Lisa Gill has issued the notice after taking cognizance of a petition filed by Federation of Private Schools and Associations of Punjab, a Mohali-based registered body related to private schools of the state.

The petitioner has sought directions to IRDA to extend the validity of insurance policy of vehicles owned by members of petitioner federation from the date on which lockdown was declared by Union government till the institution/schools are permitted to be opened with full strength. The petitioner association submitted that school buses owned by members of the federation had not been in use since March 23, 2020, on account of various orders passed by the state government as well as the Centre owing to the global outbreak of Covid-19 pandemic.

It also pleaded to direct the insurance regulatory authority to follow guidelines/provisions/general regulations of India Motor Tariff and give the concession to federation members. Directions have also been sought to the Centre and the IRDA to grant extension to members of the petitioner federation of their insurance policies of the year 2019-20 and 2020-21 on account of pandemic till the pandemic is over only to the extent of the time came between the lockdown.

According to the federation, the petition is an outcome of the Covid-19 pandemic that has ravaged the whole world and as a consequence thereof, citizens of almost every country in the world, including India, are facing unprecedented challenges. “Not only the World Health Organisation (WHO), but even the government of India has declared Covid-19 pandemic as a force majeure (latin phrase meaning a superior force) and in order to avoid its spread took various stringent measure, including imposition of lockdown,” argued the federation.

It has also been submitted that the federation’s request was genuine as even the policy of the Centre and IRDA allowed exemption for insurance when the vehicle was not used and its owner was only supposed to pay a minimum amount for fire and theft risk, which the members of the federation were ready to pay.

The matter will now come up for hearing on March 2.

Source: The Times of India