Irdai allows single personal accident cover for multiple vehicles

Come January 1, customers will not have to purchase separate compulsory personal accident (CPA) cover for each new vehicle they buy, as per a notification of insurance regulator Irdai.

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.

Animesh Das, Head of Product Strategy, ACKO General Insurance, said, "Currently, an individual vehicle owner has to buy a compulsory personal accident cover of Rs 15 lakh at cost of Rs 750 with his vehicle insurance. This has to be mandatorily taken with every vehicle insurance policy.

In case where a customer has multiple vehicles, he may end-up buying CPA cover for more than one vehicle, which is unnecessary."