Money & Banking

IRDAI to review motor insurance norms for own damage cover

Our Bureau Hyderabad | Updated on November 19, 2018 Published on November 19, 2018

The Insurance Regulatory and Development Authority of India (IRDAI) is planning to review norms of the own damage segment of motor insurance. In this regard, it has constituted a working group with experts from the regulator as well as private and public insurers.

While pricing of the motor own damage segment was de-tariffed in 2007, the basic product structure, including the terms and conditions, continue to be governed by the general regulations and various other provisions of the erstwhile India Motor Tariff (IMT).

Though adherence to general norms is mandatory, insurers are, however, allowed to file add-ons to the package policy subject to product filing guidelines. “The number of such add-ons in the market has become humongous, given the evolving nature of the business and demand for various types of covers,’’ the authority said in a circular.

“Today, there is a need to revisit the current product structure keeping in view developments in technology relating to motor vehicles as well as the fast-changing eco-systems,’’ it added.

The working group will revisit the existing framework for motor insurance in the light of various developments over the last few years, including the impact of de-tariffing the pricing component and arriving at a revised framework.

It will also review the classification of products under motor own damage as well as the product structure and design, including aspects such as duration of products, expansion of product suite to include technology-enabled ones, among others, according to a circular.

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Published on November 19, 2018
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