IRDAI rules for third party & comprehensive car insurance plans
The insurance industry in India is regulated by The Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI has a set of rules and regulations that govern how car insurance policies should be issued and how they should be administered. This article will discuss the IRDAI rules for auto insurance policies so that you can make an informed decision when buying an auto insurance policy. We will cover the following topics:
Here are the IRDAI car insurance rules for third-party liability policies:
1. The insurer must reimburse the concerned third party for any loss of property or life caused by the insured vehicle.
2. In the case of the third party's demise, the insurer must compute the compensation amount based on the dead individual's net worth. The Indian Motor Accidents Claims Tribunal passes the ultimate judgement in case of any issue.
3. In the event of third-party property loss, the compensation amount will be determined by the degree of the damage done by the insured vehicle. This can amount to up to a limit of INR 7.5 lakhs.
4. The insurer needs to pay any legal responsibilities resulting from an accident involving the concerned third party.
Here are the IRDAI car insurance rules for comprehensive policies:
1. All coverage provided under a third-party legal liability insurance policy must be provided by the insurance carrier.
2. If the car insurance claim is authorised, the insurer is required to offer theft coverage to the insured.
3. In the event of an authorised accident claim, the insurer is obligated to reimburse the cost of restoring the damaged car.
4. According to the conditions of the insurance policy, coverage for natural as well as man-made disasters, damage from explosion or fire and so on should be provided under the comprehensive auto insurance policy.
Here is a list of defined timelines within which the insurer and insured needs to adhere for transactions and other procedures:
Policy issue or cancellation
Receiving a proposal copy
Within 72 hours of loss intimation
Within 48 hours of appointment
Survey report submission
Another survey conduction request
Within 15 days of last survey receipt
Submitting additional documents request
Claim form settlement or rejection
Within 30 days of survey report receipt
Acknowledgement of grievance
Resolution of grievance
Here is table of IRDAI-approved depreciation table:
<= 6 months
6 – 12 months
12 – 24 months
24 – 36 months
36 – 48 months
48 – 60 months
Here are the recent IRDAI regulation changes:
1. New cars need to have a mandatory auto insurance policies of 3-year third-party liability coverage and annual standalone own damage cover.
2. NCB grid is made the same for all insurers.
3. In case of theft or total loss cases, the RC of the car needs to be sent to the insurers by the insured, which will stand cancelled.
4. “Compulsory deductibles” are changed to “Standard deductibles”, which are fixed at INR 1000 for vehicles with engine capacity of 1500cc or less. In the case of higher engine capacity vehicles, it is set to INR 2000.
5. All passengers travelling in an insured vehicle are recommended to have coverage of at least INR 25,000.
Owning a car is a great privilege, but it also comes with certain responsibilities. One of the most important responsibilities is to ensure that your car is properly insured. In India, the Insurance Regulatory and Development Authority of India (IRDAI) has issued the above-mentioned guidelines for auto insurance policies in order to protect the interests of policyholders. These rules apply to all car insurance policies and must be adhered to in order to ensure that your policy remains valid.
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