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Motor Insurance Update – Mandatory Personal Accident Cover Raised to 15 Lakhs

Following a High Court judgment to enhance the mandatory personal accident cover for personal cars and two-wheelers, IRDAI has decreed that the PA cover be raised to INR 15 lakhs from the current INR 2 lakhs for cars and INR 1 lakh for two-wheelers. Premiums for this mandatory cover will increase to INR 750 per annum from the current INR 100 for cars and INR 50 for two-wheelers. General insurers are required to mandatorily provide it both for Third-Party Liability as well as Comprehensive covers.

Readers should note that Third-Party insurance is unaffected by this ruling and still has to be paid. Moreover, it is also important to know that besides death, permanent complete disability is also covered (permanent loss of the use of two or more limbs due to a vehicular accident). This is a measure to address the issue of underinsurance when it comes to motor insurance.

Naturally, those who want coverage beyond INR 15 lakhs can buy relevant riders by paying higher premiums and get it.


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