Big new change: Rs 15 lakh auto insurance mandatory for all-vehicle owners: Here’s what changes for you
Wednesday, October 3, 2018 IST
Big changes to insurance policy by the Insurance Regulatory and Development Authority (IRDAI). The premium for insurance for all auto policies is set to go up and the cover for vehicle owners to also go up to Rs 15 lakh. All details
A tragic accident in 2011 that lead to a death of a young man travelling pillion on his own bike when the rider braked suddenly to avoid hitting a cyclist has now made way for a new law. When the wife of the deceased man approached the Motor Accident Claims Tribunal, the jury announced a compensation of Rs 53 lakh under the third-party insurance cover. However, United India Insurance appealed against this order as the insurance cover was only for third-parties and not vehicle owners. Under the policy then only Rs 1 lakh was granted to the vehicle's owners.
The law has now been changed. All vehicle insurance policies will now include personal accident cover worth Rs 15 lakh in case of the death of the owner while driving or riding. This new rule will help the families of accident victims especially two-wheeler riders who are most of the time under-insured. The Insurance Regulatory and Development Authority (IRDAI) in a circular has directed all third-party insurance companies to include this cover to vehicle owners-drivers of all vehicles (two-wheelers, three-wheelers, passenger vehicles and commercial vehicles) for an additional premium of Rs 750 per year (annual insurance policy). This will now be part of the mandatory insurance cover that is a must for all vehicle owners.
This insurance and cover for vehicles have to be included in both comprehensive and third-party insurance for cars and all other vehicles. However, IRDAI further says that respective companies will decide on how to price long-term policies. Currently, it is compulsory for all insurers to provide long-term third-party liability cover of 5 years for bikes and scooter insurance and 3 years for cars and SUVs.
The Madras High Court in October 2017 had ordered IRDAI to hike the personal accident cover then Rs 1 lakh to at least to Rs 15 lakh. The circular further said that the cover is provided to the owner-driver and this includes him travelling as a co-driver. To this, the United India company accepted the Madras High Court's order and said that it was indeed very unfortunate for vehicle owners who also end up paying the premium for risks confronted by the third-party and is not getting any adequate compensation in return. Further, the court also directed the insurance company to provide a higher personal accident cover for the owner of the vehicle who is also the driver.
Related Topics
Related News & Articles
On an office hours hangout, Google’s John Mueller discussed a common mistake publishers make when removing content for SEO.
Recently posted . 918 views . 1 min read
India's has received its first ever Tesla Model X SUV. The all-electric SUV is one the most tech and performance friendly cars and can hit 0-100 kmph in just 2....
Recently posted . 701 views . 1 min read
An alleged Bitcoin scam in South Africa has left speculators with losses of more than $80 million (roughly Rs. 542 crores) as an investment company admitted Friday ...
Recently posted . 683 views . 2 min read
For 2020, the Hayabusa receives a new front brake caliper and two new colour schemes.
Recently posted . 799 views . 0 min read
HIGHLIGHTS
The Yaris comes in four variants and all are available in manual and automatic options
It gets so...
Recently posted . 674 views . 2 min read
Trending News & Articles
Tata Harrier’s three-row seat version in works, details out
Recently posted . 2K views . 0 min read
Rolls Royce cars are extremely luxurious. While there are many expensive pieces of equipment in Rolls Royce cars, their most relaxing feature is the silence that ...
Recently posted . 2K views . 2 min read
The following list of India's Top 5 Mobile Charger manufacture Brand 2019
Recently posted . 2K views . 0 min read
XUV300 is the latest entrant in the compact SUV segment.
Recently posted . 2K views . 0 min read
More in Electronics & Gadgets
Don’t pack your bags just yet!
HIGHLIGHTS
-- NASA hasn’t found a...
Recently posted. 890 views . 2 min read
A public warning about charging tablets and cell phones on a bed has been released by the Newton, New Hampshire Fire Department. In addition, most people sleep with...
Recently posted. 835 views . 2 min read
When scientists ‘photographed’ an invisible black hole: the image captures the area around it, generated from data collected by a set of telescopes, a...
Recently posted. 804 views . 1 min read
Recently posted . 318 views
Recently posted . 1K views
Recently posted . 1K views
Recently posted . 1K views
Recently posted . 1K views . 77 min read
Recently posted . 1K views . 88 min read
Stephen Hawking left a collection of articles on what he called 'the big questions' in preparation for a book that will be published on Tuesday.
Recently posted. 690 views . 1 min read
Sprint was forced to shut down a cellphone tower that was located outside of a school in the suburbs of Sacramento, California. The tower location became a topic ...
Recently posted. 654 views . 1 min read