Key highlights of IRDAI circular:
- From September 1, 2019, insurers can issue standalone own damage policies for two-wheelers and cars on an annual basis. Thus the issuance of bundled policies for cars and two-wheelers will not be compulsory.
- The new regulation will be applicable for both new and old vehicles.
- Further, insurers will have the option to offer package policies, in addition to stand-alone own damage and third party policies. This will mean that insurers can offer a long term bundled package of own damage and third party cover or offer it separately to the customers.
- However, the long term stand-alone Own Damage policy will not be permitted for the present.
- For issuing and renewing standalone own damage annual covers, insurers must ensure that it is offered only if a Motor TP cover is already in existence or is taken simultaneously.
Comment:
- This circular from IRDAI has provided much needed clarity in terms of insurer's approach for standalone motor Own Damage (OD) policy, its pricing and duration.
- it also provides clarity to the customers who have opted for bundled cover.
