Previously, the capital sum insured (CSI) under the owner-driver personal accident section for motorised two-wheelers and private cars/commercial vehicles was Rs 1 lakh and Rs 2 lakh, respectively.
Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs 15 lakh at a premium of Rs 750 per annum. This move is aimed at providing much-needed financial relief to road accident victims.
The regulator has directed all general insurers to offer a minimum Capital Sum Insured (CSI) of Rs 15 lakh under the Compulsory Personal Accident (CPA) cover for owner-driver under Liability Only policies for all classes of vehicles.
The premium for this compulsory cover will be Rs 750 per annum for annual motor insurance policies. This rate will remain valid until further notice, as stated by the Insurance Regulatory and Development Authority of India (IRDAI) in its circular.
Insurers may start issuing these revised covers from the date of receipt of the circular, while ensuring compliance with the File and Use Guidelines on or before October 25, 2018. All other existing provisions applicable to Motor Third Party Insurance will continue to remain in force.