Accident cover for vehicle owners raised to Rs. 15 lakh

The Insurance Regulatory and Development Authority of India (IRDAI) has raised the personal accident cover for vehicle owners in case of death while driving from Rs. 1 lakh to Rs. 15 lakh. This comes in the wake of a Madras High Court judgement from October 2017.

IRDAI has also directed insurance companies to include this cover for owner-drivers of all classes of vehicles including 2-wheelers who are often under-insured. The directive states that the cover is provided to the owner-driver while driving the vehicle, mounting into or dismounting and co-driver travelling in the insured vehicle. The insurance companies can charge an additional premium of Rs. 750 for the annual policy, which will be part of the mandatory insurance cover (third-party) for all vehicles, the circular adds.

Last month, the IRDAI had issued a notification stating that third-party insurance cover for new cars and 2-wheelers will be mandatory for a period of 3 years and 5 years respectively. 

Source: TOI