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IRDAI Directs Insurers to Offer Four-Layer Motor Cover Following SC Order
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What Happened?
The IRDAI has implemented a Supreme Court directive to restructure motor insurance into four sections, effective December 15, 2026. This aims to clarify coverage options for customers.
Key points
- The new framework separates mandatory third-party liability and owner-driver personal accident cover from optional covers.
- Third-party liability remains mandatory, while occupant liability and own-damage cover are optional.
- Insurers must provide a Customer Information Sheet and a customer option form for each policy.
- Existing third-party policyholders can add occupant liability cover without canceling their current policies.
- The new structure must be integrated with Bima Sugam by December 15, 2026.
Key insights
- The new structure may lead to increased transparency in insurance pricing.
- Customers will have clearer options, potentially reducing confusion over coverage.
- Insurers can innovate on coverage while adhering to the new framework.
Why it matters
This restructuring could help customers make informed choices about their motor insurance coverage.
Tags
Entities
IRDAI· OrganizationSupreme Court· OrganizationNational Insurance Company· CompanyBima Sugam· Product
Source
Times of India
