IRDAI clarifies lmplementation of Compulsory Personal Accident lnsurance for owner-driver

Oct 24, 2018 | by Avantis RegTech Legal Research Team

Insurance Regulatory Development Authority of India (IRDAI) vide circular dated October 09,2018 has clarified implementation of personal accident insurance for owner-driver as follows-

lt is clarified that it is the choice of the owner-driver to opt for a one year CPA cover or long term CPA cover and insurers should not compel owner drivers to go in for long term package policy or long term CPA cover.

Hence all insurers are hereby directed to ensure that they necessarily offer the choice of one year CPA cover to an owner-driver


India Motor Tariff (IMT) provides for compulsory cover to registered owner only where he/she holds a valid driving  licence.

Hence compulsory PA cover is not applicable where a vehicle is owned by a company, a partnership firm or a similar body corporate or where the owner-driver does not hold a valid driving licence.




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