Single accident cover for multiple vehicles from Jan1

Insurance regulator Irdai has decided to unbundle the compulsory personal accident (CPA) cover and allow the issuance of a standalone CPA cover for owner-driver.

Currently, a vehicle buyer has to buy a CPA for every vehicle he or she purchase. In September this year, the Insurance Regulatory and Development Authority of India (Irdai) had raised the minimum insurance cover for owner-driver to Rs 15 lakh for an annual premium of Rs 750. Earlier, the capital sum insured (CSI) for two-wheelers and private cars/commercial vehicles was Rs 1 lakh and Rs 2 lakh, respectively.”Since a general personal accident cover also includes cover against motor accidents, if an owner-driver already has a 24 hour personal accident cover against Death and Permanent Disability (Total and Partial) for CSI of at least Rs 15 lakh, there is no need for a separate CPA cover to be taken,” said the notification of Irdai. The changes have been affected following feedback from various quarters wherein it has been pointed out that many owner-drivers already have existing general personal accident covers which ought to be taken cognizance of.