Previously, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs 1 lakh and Rs 2 lakh, respectively.
Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs 15 lakh for a premium of Rs 750 per annum, A move to provide some succor to road accident victims. Currently, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs 1 lakh and Rs 2 lakh, respectively.
The regulator directed all general insurers to provide a minimum CSl of Rs 15 lakh under Compulsory Personal Accident (CPA) cover for owner-driver under Liability Only to all classes of vehicles at the premium rate of Rs 750 per annum for annual policy.
This rate will be valid until further notice, Insurance Regulatory and Development Authority of India (IRDAI) said in a circular.
"A higher CSI may be provided over and above Rs 15,00,000 through Optional Covers under Liability Only and under Section lll of Package Policies/ Bundled Covers on payment of additional premium at the option of the insured.
Insurers may start issuing such covers effective from the date of receipt of this circular even while ensuring that the filing for these is done under File and Use Guidelines on or before October 25, 2018, the circular added. All other extant provisions applicable for Motor Third Party Insurance will continue to apply.
