IRDAI issues exposure draft on product structure for motor own damage

Nov 27, 2019 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on November 25, 2019,  issues an exposure draft on product structure for motor own damage.

The working group on product structure for motor own damage recommends the followings:-

1. The general Regulation has been rationalized and renamed as Motor General Regulation.

2. The depreciation and Sum Insured calculation has been made simple.

3. Vehicle age-based depreciation has been recommended for partial losses to make it completely objective and remove all ambiguity and subjectivity in claim settlement.

4. Revised schedule of compulsory deductibles based on Sum Insured has been recommended.

5. Standardized NCB grid is introduced for long term policies.

6. A new Sum Insured option has been recommended where Return to Invoice is a part of basic cover for brand new private cars.

IRDAI invites valuable comments or suggestions from all the stakeholders on these key recommendations on or before December 16, 2019, at the email-ids: [email protected] and [email protected].

 


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