Politics · India · 7 hrs ago
India mandates four-part motor insurance structure from December 15
India’s insurance regulator, Irdai, has set a four-part structure for motor insurance covering private cars and two-wheelers from December 15.
The change follows a Supreme Court ruling that called for policies to be divided into layers so vehicle owners can make informed choices.
Third-party liability remains mandatory, while legal liability for passengers and pillion riders, personal accident cover and protection for damage to the insured vehicle are handled separately.
Insurers must give customers an option form and information sheet, with the price of each cover disclosed.
Passenger liability cover is optional and is limited to the vehicle’s registered seating capacity, with some family members excluded.
Existing third-party policyholders can add passenger liability cover by paying extra, without cancelling their current policy.
Insurers must adopt the new structure from December 15, but the regulator has not stated any further next steps.
India’s insurance regulator has mandated a four-part motor insurance structure for private cars and two-wheelers from December 15.
The structure separates mandatory third-party liability cover from optional covers, allowing customers to choose them separately.
Insurers must disclose premiums for each cover and provide a customer option form and Customer Information Sheet at the point of sale.
The changes follow directions from the Supreme Court to help vehicle owners make informed choices.
Existing third-party policyholders can add occupant liability cover by paying an additional premium without cancelling their policy.
- Who
- The Insurance Regulatory and Development Authority of India (Irdai).
- What
- It mandated a four-part motor insurance structure for private cars and two-wheelers, with covers available separately.
- When
- From December 15.
- Where
- India.
- Why
- The changes follow Supreme Court directions intended to help vehicle owners make informed choices.
This story does not have two clearly opposing sides.
The court sought a four-layer motor insurance policy structure to help vehicle owners make informed choices.
Irdai issued a circular setting out the new structure and requirements for insurers.
The four-part structure is due to take effect.
- Regulator
- Insurance Regulatory and Development Authority of India (Irdai)
- Effective date
- December 15
- Vehicle types
- Private cars and two-wheelers
- Required cover
- Third-party liability
- Optional covers
- Occupant and pillion rider legal liability, additional personal accident cover, and own-damage protection