In its statement released today, the IRDAI (Insurance Regulatory and Development Authority of India) said that car and two-wheeler owners can replace their bundled compulsory personal accident (CPA) cover on expiry with a standalone one from a registered general insurance provider starting 1 January 2019.
In October, the regulator had asked insurers to provide owner-driver vehicles (both cars and two wheelers) with a minimum cover of Rs 15 lakh under compulsory personal accident cover. Earlier, the minimum coverage was Rs 1 lakh. The change increased the premium to a minimum of Rs 750 per annum.
IRDAI today said that after consideration of existing personal accident covers of owner-drivers and that one may own more than one vehicle, it would be rational if he/she would not have to buy different policies for different vehicles. It was decided that the standalone compulsory personal accident cover would suffice for all the vehicles owned, making it valid for all the vehicles driven by the individual.
With effect from 1 January 2019, vehicle owners can opt for CPA cover as a part of the package policy as it exists today or purchase a standalone one, in which case, the package policy shall be deleted.