4-layer motor cover for new private cars, 2-wheelers from Dec. 15: IRDAI

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Published - November 03, 2026 09:29 pm IST - HYDERABAD

Insurance regulator IRDAI has set a December 15 deadline for all general insurers to offer new private cars and two-wheelers a four-layer motor insurance policy covering third party liability, legal liability to occupants, personal accident and own damage of the vehicle.

The cover will comprise both mandatory and optional components, with the optional covers available on payment of an additional premium.

Third party insurance, as is currently the case, and the personal accident cover for the owner will be mandatory.

The optional components will be coverage for legal liability towards occupants or pillion riders, including employees of the insured; personal accident cover for occupants or pillion riders, including any driver other than the owner-driver; and the own damage cover.

In a circular to general insurers, which follows the Supreme Court directions in a case, the Insurance Regulatory and Development Authority of India said the four-layer motor cover structure, uniform wordings along with the option form will come into force from December 15.

Getting the option form completed by the customer is mandatory for all insurance policies issued to this category of vehicles.

Apart from following uniform wordings, the schedule issued by the insurer should reflect the actual coverage offered along with premium charged against each section in a transparent manner, the regulator said in the circular on implementation of the Supreme Court directions.

The Supreme Court passed the directions to bring clarity on availability of various policy options to the vehicle-owner and to make an informed choice of purchasing suitable insurance protection.

It said IRDAI in consultation with General Insurance Council and insurance companies should formulate uniform policy wordings for the optional covers.

IRDAI said it is mandatory for insurers to issue Customer Information Sheet at the point of sale.

On the optional components, the customers can opt in by tick whether offline or online.

The insurers can continue to innovate the coverage and determine the pricing of the own damage covers, in consonance with market forces, it said.

For existing policies too, the optional covers can be made available on payment of an additional premium.

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