Key Motor Insurance Rules Explained

Key Motor Insurance

Indian insurance companies are governed by the Insurance Regulatory and Development Authority of India (IRDAI), which promotes ethical behavior and open business dealings. #

What do IRDAI vehicle insurance rules mean? 

The insurance companies and policyholders must abide by the rules established by IRDAI. These regulations guarantee quicker resolution of valid motor insurance claim process, the avoidance of motor insurance fraud, the elimination of malpractices, and efficient grievance remedies. #

What rules apply to third-party motor insurance coverage? 

The owner of the vehicle is protected against third-party losses by a third-party liability motor insurance policy. In India, it is required by law to purchase at least this kind of automobile insurance policy. The fundamental guidelines for third-party liability car insurance are listed below.

  • For losses involving life or property brought on by the covered vehicle, the insurance provider is required to make up the difference.
  • The amount of reimbursement in the event of third-party property damage will depend on how much harm the insured vehicle has really done. This amount has a cap of Rs. 7.5 lakhs. *
  • The insurance provider is responsible for covering any monetary responsibilities that result from an accident with a third party.
  • The insurance provider is responsible for paying the insured amount in accordance with the provisions of the Personal Accident Cover Policy in the event that the paid driver of the insured vehicle dies or becomes disabled. *

What rules apply to comprehensive motor insurance coverage? 

The Comprehensive Car Insurance Policy is not a requirement under the law. *

However, because this plan offers comprehensive coverage, insurance experts suggest choosing it. See the list below to learn about IRDAI requirements for motor insurance. #

  • All coverage available under the Third-party Liability Insurance Plan must be provided by the insurance provider.
  • If the claim is accepted, the insurer is required to offer theft coverage.
  • In the event that an accident claim is allowed, the insurance provider is responsible for paying for the cost of repairing the damaged vehicle.
  • According to the requirements of the insurance plan, coverage for calamities caused by either nature or man, damage from fire or explosion, etc., must be provided under a Comprehensive Policy. *

General exclusions 

There are several exclusions listed in the policy paperwork for each motor insurance coverage. These are circumstances where the policyholder is not eligible to make a claim under their motor insurance policy. 

  • There is no coverage for any mechanical or electrical breakdown
  • Regular wear and tear
  • Intentional damage
  • Damage from driving under the influence of an intoxicating substance
  • Damage sustained while the policy was inactive
  • While travelling outside of the specified location, the car was damaged
  • Damage caused by breaking driving laws

IRDAI guidelines for renewing motor insurance 

IRDAI has established some guidelines for auto owners who wish to renew their insurance contracts. For continuing coverage, the policy must be renewed in a timely manner. When there are gaps, the insurance provider is not responsible for covering the cost of harm that took place during the time the policy was not in effect. Any applicable No Claim Bonus will be lost if the automobile owner doesn’t renew motor insurance within 90 days of the expiration date. * #

IRDAI complete loss regulations 

When a car’s repair costs are extremely high, it is regarded as a total loss. This kind of harm may result from a significant accident or a natural catastrophe. The insured declared value of an automobile, which the policyholder states when purchasing the insurance, is directly tied to the total loss computation. According to IRDAI, the insurer will claim a total loss if the repair expenses are greater than 75% of the IDV. * #

* Standard T&C Apply

# Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.