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IRDAI sets uniform Rs. 750 annual premium for the cover
The minimum Compulsory Personal Accident (CPA) cover for owner-drivers under the motor insurance policy has been increased to Rs. 15 lakh. The enhanced, mandatory cover that came into force with immediate effect will lead to a higher annual premium of Rs. 750 and follows a directive from insurance regulator IRDAI. At present, the minimum cover for two-wheelers is Rs. 1 lakh for which annual premium is Rs. 50 while for private cars/commercial vehicles the minimum cover is Rs. 2 lakh for Rs. 100. “A minimum capital sum insured (CSI) of Rs. 15 lakh shall be provided under CPA cover for owner-driver under liability only, under Section III of Package Policies to all classes of vehicles and bundled covers wherever applicable at the premium rate of Rs. 750 per annum for annual policy. This rate will be valid until further notice,” IRDAI said.
HC judgment
The decision comes in the backdrop of a Madras High Court judgment as part of which IRDAI was directed to enhance CPA cover to at least Rs. 15 lakh. The CPA cover is provided to owner-drivers while driving the vehicle, including “mounting into/dismounting from or travelling in the insured vehicle as a co-driver,” Thursday’s IRDAI circular to insurers said. Bajaj Allianz General Insurance MD and CEO Tapan Singhel said the move is a step in the right direction. Head-Product Development of SBI General Insurance Puneet Sahni said the move ensured that those exposed to accident risk are adequately covered for any unfortunate event.
Source : https://www.thehindu.com/todays-paper/tp-business/floor-cpa-cover-for-motor-insurance-hiked-to-rs-15-lakh/article25011400.ece
