Motor Insurance might Get Costlier with Newly Introduced Sum Insured for Personal Accident Cover by IRDA

Due to the increase in the sum insured, the auto insurance policies’ premiums will rise by minimum Rs 650. It is necessary for the personal accident cover, which one needs to buy for vehicle insurance. The IRDA of India has released a circular on the 20^th September which states that all general insurance companies have to amplify the sum that is insured under the mandatory personal accident cover to Rs 15 Lakh. The existing cover is of Rs 1 Lakh for 2-wheelers and Rs 2 Lakh for 4-wheelers. The Madras high court directed the regulator and all insurance companies have time until 25^th October to file the products, which should be in correspondence with all the new guidelines.

What is a necessary personal accident cover?

As per the India Motor Tariff in 2002, the motor insurance policy should also have a mandatory personal accident cover as a part of it. This type of cover is valid in both the cases: if an individual buys an only comprehensive policy or a third-party policy, which consists of both - the own-damage and third-party covers.

Till now, Rs 50 was the premium for a compulsory personal accident cover for a two-wheeler for a cover of ₹1 lakh. Rs100 was the premium for a private car or a commercial vehicle for a cover of ₹2 lakh. A uniform cover of Rs.15 Lakh is now applicable for all 2-wheelers, all private cars and any commercial vehicles at a premium of just Rs. 750 excluding taxes. As an add-on cover, an insurance company can also offer a higher sum insured for all personal accidents.

Written By: PolicyBazaar - Updated: 12 July 2021

You May Also Like

IRDAI Mandates Third-Party Insurance for Battery Operated Rickshaws

By PolicyBazaar
-
Updated: 12 July 2021
-
14922 Views

IRDAI Mandates Third-Party Insurance for Battery Operated Rickshaws The Insurance Regulatory and Development Authority of India (IRDAI) has made third-party insurance mandatory for battery operated rickshaws that do no...
read more
Telangana Recognises E-Motor Insurance Policies

By PolicyBazaar
-
Updated: 13 July 2021
-
6910 Views

Telangana Recognises E-Motor Insurance Policies Telangana Government has given recognition to é-motor insurance policies in the state in collaboration with the Insurance Regulatory and Development Authority of India ...
read more
With Rs 60.29 cr in Revenues, Future Generali Net Worth increases by 50% in FY 15

By PolicyBazaar
-
Updated: 15 July 2021
-
6837 Views

With Rs 60.29 cr in Revenues, Future Generali Net Worth increases by 50% in FY 15 The Indo-Italian JV Future Generali India Insurance recorded a 50% boost in its net income, with Rs 60.29 crore profits recorded for the...
read more
"No Compensation To The Owner If Vehicle Is Lost Due To Negligence"

By PolicyBazaar
-
Updated: 12 July 2021
-
5664 Views

"No Compensation To The Owner If Vehicle Is Lost Due To Negligence" In a judgment issued by the trial court, the owner of a vehicle cannot claim for any compensation if a vehicle is lost or damaged due to the owner’s...
read more
Odd-even Rule in Delhi to Lessen the Risk, Hence the Premiums

By PolicyBazaar
-
Updated: 16 February 2021
-
4709 Views

Motor insurance premiums are expected to go down as vehicles would be less prone to accidents due to the odd-even rule in Delhi. Only half the number of vehicles would ply on the roads on a given day. “The cars would ...
read more