All motor policies will now include personal accident protection that will cover the owner driver for Rs. 15 lakhs in case of death while driving/riding.
The move will go a long way in providing succour to families of accident victims, particularly two wheeler owners who are often under insured. Insurance regulator IRDAI has directed companies to include this cover to all owner drivers for all classes of vehicles for an additional premium of Rs. 750 for annual policy. This will be part of the mandatory insurance cover that all owners need to buy.
While the insurance has to be provided mandatorily with both comprehensive and third party covers, the regulator has left it to companies to decide on how to plan long term policies. An earlier order makes it mandatory for insurers to offer long term third party liability cover of five years for two wheelers and three years for four wheelers.
IRDAI’s directive comes in the wake of a judgment of the Madras HC in October 2017. The court had ordered IRDAi to hike personal accident cover from the existing Rs. 1 lakh to not less than Rs. 15 lakhs.
Article Source : The Times Of India