Insurance Regulatory and Authority of India (Irdai) in its circular has asked insurers to enhance capital sum insured in compulsory personal accident cover for owner-driver under motor insurance policies to Rs 15 lakh.
Currently, the mandatory cover is capped at Rs 1 lakh for two-wheelers and Rs 2 lakh for private or commercial cars, respectively. The premiums for Rs 15-lakh cover have been fixed at Rs 750 per annum.
Stakeholders in the industry say even as premium rates go up, coverage will also increase, and it’s a very welcome move for the policyholders. Earlier, the premiums were Rs 50 for two-wheelers and `100 for cars.
