The insurance regulator has announced that car and two-wheeler owners can replace their bundled compulsory personal accident (CPA) cover on expiry with a standalone one starting 1 January 2019.
In its statement, the IRDAI said that after consideration of existing personal accident covers of owner-drivers and that one may own more than one vehicle, it would be rational if he/she would not have to buy different CPA policies for different vehicles.
The IRDAI said that it has been decided that standalone compulsory personal accident cover would suffice for all vehicles owned by a single individual. Thus, with effect from 1 January 2019, vehicle owners can opt for CPA cover as a part of the package policy as it exists today or purchase a standalone one, in which case, the package policy shall be deleted.
In October, the regulator had directed insurers to provide owner-driver vehicles (both cars and two wheelers) with a minimum cover of INR1.5m ($20,900) as compulsory personal accident cover. Earlier, the minimum coverage was INR100,000. The move led to increases in premiums for vehicle owners.
The IRDAI said that various quarters had pointed out that many owner drivers already have existing general Personal Accident covers. Also, the fact that an owner driver may own more than one vehicle needs to be taken into consideration in a more rational manner so that the he/she does not have to buy a separate CPA policy for each vehicle owned.