Sophisticated Add-Ons to Motor – Own Damage policy
The Concept of Motor Insurance is constantly evolving. The advent of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of the millennials. The general insurance sector needs to keep pace with and adapt to the changing needs of the policyholders.
In its perpetual endeavor to protect the interest of the policyholders and increase the insurance penetration in India, Insurance Regulatory and Development Authority of India (IRDAI) has been seeking to facilitate the industry to move with the times. And as a step towards facilitating technology enabled covers, IRDAI has permitted general insurance companies to introduce the following tech-enabled concepts for the Motor Own Damage (OD) cover:
1. Pay as You Drive
2. Pay How You Drive
3. Floater policy for vehicles belonging to the same individual owner for two wheelers and private cars
The above mentioned covers will be provided as add-ons to the basic policy of Motor OD.
Introduction of the above options will aid in giving the much needed fillip to Motor OD Insurance in the country and increase its penetration.
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Insurance Regulatory Development Authority of India
Ref:1 RDAI/NL/CIR/Motor/136/07/2022
05/07/2022
CIRCULAR
ALL GENERAL INSURERS CARRYING ON MOTOR INSURANCE BUSINESS
Re: Introduction of new add-ons in Motor Insurance
With a view to keeping pace with new developments in the market, especially involving the use of technology, and in order to provide more options for policyholders, the Authority, in terms of powers under Section 14 (2) (i) of IRDA Act, 1999 hereby permits general insurers to introduce the following concepts for the Motor Own Damage (OD) cover through the filing of appropriate add-ons to the basic OD policy on an annual basis:
1. Pay As You Drive
2. Pay How You Drive
3. Floater policy for vehicles belonging to the same individual owner for two wheelers and private cars
2. Introduction of the above options will aid in giving the much needed fillip to Motor Own Damage Insurance and increase its penetration.
3. The extant guidelines for product designing and filing, including modified product filing procedure permitted vide Circular Ref: IRDAUNUCIR/MISC/107/6/2022 dated 1st June, 2022 shall continue to be applicable for the above proposed add-ons.
4.. This Circular shall come into effect immediately.
