Introduction of new add-ons in Motor Insurance (Circular)

IRDAI vide circular bearing ref No: IRDAI/NL/CIR/Motor/136/07/2022 dated July 06, 2022 has issued a Circular on “Introduction of new add-ons in Motor Insurance” (Circular), which shall come into effect immediately. IRDAI has also issued a Press release on the corresponding subject.

Major highlights of the Circular are as follows:

To keep pace with new developments in the market involving use of new technology and to provide more options for policyholders, IRDAI has permitted general insurers to introduce the following concepts of Motor Own Damage (OD) covers through filling of appropriate add-ons to the basic OD policy on an annual basis

• Pay as You Drive Pay How You Drive Floater policy for vehicles belonging to the same individual owner for two wheelers and private cars
• The above option is expected to give much needed fillip to the Motor OD insurance and increase in penetration
• The extant Guidelines for product designing and filling, including modified product filling procedure dated June 1, 2022 shall continue to be applicable for above proposed add-ons

Source category: IRDAI

Attachments

• /2022/63_2022-07-05_Introduction_of_new_add-ons_in_Motor_Insurance_(Circular)_(1).pdf
• /2022/63_2022-07-05_Introduction_of_new_add-ons_in_Motor_Insurance_(Circular)_(2).pdf