The latest update from IRDAI confirms the hike of mandatory personal accident cover for owner-driver vehicles from Rs 2 lakh to Rs 15 lakh under motor insurance policies. The Insurance Regulatory and Development Authority of India (IRDAI) acted in accordance with the ruling made by the Madras High court issued a note ordering the insurers to initiate the process of newly updated motor insurance policy. The calling was made on September 20 and the insurance agencies are given time till October 25 to file the products said the sources of IRDAI.
According to the old rules the Personal Accident Cover (PAC) was Rs 1lakh for two wheelers and Rs 2 Lakh for private commercial cars. The premium amount charged for two wheeler and four wheeler are Rs 50 and Rs 100 respectively as per the rules of IRDAI. The new rule clearly implies the insurers to give minimum cover of Rs 15 lakh under PAC for owner-driver vehicles with a premium of Rs 750 per annum for annual policies including cars and two wheelers. Customers can avail higher covers in the multiples of Rs 1 lakh and Rs 5 lakh but the ceiling cover was fixed as Rs 15 lakh.
PAC has been made mandatory for motor insurance policy available for both third-party and a comprehensive cover. This also includes damage liability for personal accident cover.
The amount of compensation is entirely based on the nature of the injury oriented with death and disability. Death cover falls under 100 percentage of coverage and loss of two limbs or sight of two eyes can be covered for 100% coverage. Loss of one limb and one eye sight can be covered for 50% and permanent total disablement from injuries can be availed for 100% coverage.