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How Do IRDAI Regulations of Various Facets of Motor Insurance Plans Impact the Policy Purchase?

In India, the insurance industry is huge and ever-increasing, with more and more people buying life and general insurance. To safeguard the interest of policyholders and to establish a certain uniformity amongst insurance companies, the Insurance Regulatory and Development Authority of India (IRDAI) has established a certain set of rules and regulations.

Like with any other type of insurance, the IRDAI has established certain regulations for motor insurance too. The purpose behind it is to make the entire process of motor insurance smoother for both the policyholder and the insurance company. If you have or are planning to purchase motor insurance, it is good to be well-aware of the IRDAI guidelines to make an informed decision. You can visit the official website of IRDAI for further details.

Primary guidelines by IRDAI for two-wheeler insurance

There are two primary types of insurance coverage offered. They are third-party liability insurance and comprehensive insurance.

Coverage provided in motor insurance

A third party insurance provides cover in case the policyholder is sued or legally liable for any injuries or damages caused to a third party. According to the IRDAI guidelines, here are the circumstances covered when you buy a comprehensive two-wheeler insurance plan:

  • Any loss or damage caused because of inflammation, fire, earthquake, explosion, storm, flood, or any other natural calamities.
  • Any loss or damage caused to the vehicle by manmade disasters like theft, riot, or strike.
  • Third-party liabilities that arise because of injury, accidental damage, or death.
  • A personal accident cover of up to ₹1,50,000 for multiple vehicles.
  • Any damages caused to the vehicle because of an external accident.

* Standard T&C Apply

Exclusions of motor insurance

According to the IRDAI, here are some exclusions that your comprehensive motor insurance will not cover-

  • Any damage caused due to a mechanical breakdown or normal wear and tear.
  • Any damage caused due to depreciation of the vehicle or any consequential loss.
  • If in case of an accident, the driver does not have a valid licence.
  • Any loss that has occurred beyond the geographical area mentioned in your insurance is not covered.
  • Any accident that is caused by the driver under the influence of alcohol or an intoxicating substance.
  • Any claim that arises for contractual liability.
  • Any damage caused to bike tubes and tires. Some insurance companies offer 50% of their total cost in case of replacements.

* Standard T&C Apply

Apart from the basic inclusion and exclusions, there are several other guidelines that the IRDAI has provided for motor insurance on specifics like calculating depreciation, determining personal accident cover, or rules specific in situations like an accident. You can visit the official website of IRDAI for further details.

When you buy motor insurance for your vehicle, use a motor insurance calculator to get an estimate of your premium on your desired sum assured. It is important to read through the IRDAI guidelines before buying motor insurance to know your insurance better. Also, read the fine print of your motor insurance policy before purchasing to avoid any last-minute problems at the time of claim. Insurance is the subject of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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