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The Insurance Regulatory and Development Authority of India (IRDAI) has increased the personal accident cover for vehicle owners. TOI reports that the personal accident cover has been increased from Rs 1 lakh to Rs 15 lakh.
The increase in personal accident cover will be helpful for the families of accident victims. IRDA has directed the insurance companies to include the accident cover for owners/drivers of all vehicle classes including two-wheelers who are often under-insured. IRDA has increased the accident cover in the wake of the Madras High Court judgement in October 2017.
IRDA also stated that the cover is provided to the owner/driver while driving the vehicle, mounting into or dismounting and co-driver who is travelling in the insured vehicle. So, the increased cover will be beneficial to both the driver and the passenger.
IRDA has instructed the insurance companies to include the cover for all classes of vehicles at an additional premium of Rs 750 for the annual policy. The cover will be part of the mandatory insurance policy that all the vehicle owners need to purchase.
Previously, IRDA had issued a circular stating that the third-party insurance is mandatory for all the two-wheelers and four-wheelers. As per the new rule, the four-wheeler owners should purchase a three-year insurance while the two-wheeler owners have to purchase a five-year insurance policy.
Thoughts On The Increase In Personal Accident Cover
IRDA has made a good decision by increasing the accident cover for all the vehicles. The increased accident cover will definitely help the families of the accident victims in case of death of the owner/driver while driving. Even though there will be an increase in the insurance premium, the benefits of the cover will justify the price tag of the insurance policy.