The Insurance Regulatory and Development Authority (IRDA) has increased the minimum insurance cover to Rs 15 lakh for drivers owning vehicles. For this, they have to pay a premium of Rs 750 annually. This step will provide relief to the victims of road accident. At present, the insurance amount for two-wheeler and private car / commercial vehicles in this category is Rs 1 lakh and Rs 2 lakh respectively. However, some general insurance companies offer additional cover for the higher sum insured on payment of additional premium under the package policy.
The regulator has instructed all general insurance companies to provide a minimum insurance cover of Rs 15 lakh at an annual premium of Rs 750 under mandatory personal accident (CPA) for owner-driver cover under accountability.
IRDA said in a circular that this rate will be valid till further notice. It states that more insurance cover above 15,00,000 can be provided by taking additional premium only under Section 3 of the Accountability and Package Policy.
In this regard, Bajaj Allianz General Insurance Managing Director and Chief Executive Officer Tapan Singhal has said that increasing the insurance cover to Rs 15 lakh for drivers in case of mandatory personal accident of the regulator is a step in the right direction.
He said, “I believe that if someone dies in an accident or is crippled, then in the event the appropriate personal accident insurance cover is necessary for effective financial support to the policy holders and their family members.”
According to the circular, insurance companies can start giving this insurance cover after getting a copy of the order. It has asked to use the guideline on or before 25 October 2018.