Insurance Regulatory and Development Authority (IRDAI) has increased the minimum insurance cover for owner-driver to Rs 15 lakh for a premium of Rs 750 per year, considering the high number of road accidents that place in the country every year. The increase in limit will bring some relief to the families of road accident victims.
At present, the minimum 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. Some general insurance companies are however providing add-on covers above the limit on payment of additional premium.
As per IRDAI's new directions, all general insurers will be needed to provide Rs 15 lakh cover under the Compulsory Personal Accident (CPA) for owner-driver under liability only to all classes of vehicles and at a premium of Rs 750 per annum. The decision is valid until further notice the regulator 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," it said.