The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a four-layer structure for motor insurance policies covering private cars and two-wheelers, effective December 15.
The new framework will allow vehicle owners to select insurance covers based on their requirements instead of having to opt for multiple covers together.
Under the revised structure, liability cover for passengers in cars and pillion riders on two-wheelers will be optional. Vehicle owners will also be able to choose different covers depending on the protection they need.
Insurers will have to disclose the premium for each cover separately, allowing policyholders to see how much they are paying for individual components of their motor insurance policy.
IRDAI has also mandated standardised policy wording for private vehicle insurance across all general insurers offering motor insurance.
The requirement will apply to policies covering private cars and two-wheelers, including new vehicles.
Commenting on the development, Shanai Ghosh, MD and CEO of Zuno General Insurance, said, “The new framework expands coverage while preserving customer choice by introducing optional liability and personal accident covers for occupants of the car. This modular structure allows customers flexibility to create the protection they need, while enabling insurers to offer broader and more relevant coverage.”
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