IRDA to allow vehicle owners to decide damage cover

Starting 1 September, vehicle owners would be able to get standalone damage cover for their vehicles on an annual basis as the Insurance Regulatory Development Authority of India (IRDA) has allowed insurers to issue tailor-made annual damage insurance cover for two-wheelers and cars.

“Consequently, effective September 1, 2019, the issuance of bundled policies for cars and two-wheelers will not be compulsory. Further, insurers will have the option to offer package policies, in addition to stand-alone own damage and third party policies,” the IRDA has said in a new circular.

While this may allow insurers to offer a long term bundled package of own damage and third party cover or offer it separately to the customers, the IRDA has made it clear that long term stand-alone Own Damage policy will not be permitted for now.

The stand-alone damage cover will be also be made available to those renewing motor insurance policies provided they have opted for mandatory third party cover.

“The name of the insurer, policy number, the start date and end date of the TP policy shall be indicated in the OD policy document,” it has said.