Compulsory PA Insurance for Owner-Driver under Motor insurance

Ji~ ~l(Jl4 .fmi filfll41>1"1 3th: Pcrci;m ~ •:l :ltiti INSURANCE REGULATORY AND ir.lai DEVELOPMENT AUTHORITY OF INDIA Ref: IRDAI/NL/CIR/MOTP/170/10/2018 g th October, 2018 ALL GENERAL INSURERS (EXCEPT ECGC, AIC AND STAND-ALONE HEAL TH INSURERS) Re: Compulsory Personal Accident Insurance for Owner-Driver under Motor Insurance This has reference to Circular Ref.lRDAI/NL/CIR/MOTP/158/09/2018 dated 2Qth September, 2018 on the subject. We have received complaints/communications from various stakeholders regarding certain aspects of implementation of Compulsory Personal Accident Insurance for owner-driver. In this regard, insurers shall ensure the following: 1. It has come to our notice that insurers are offering only long-term Compulsory Personal Accident (CPA) policy for new cars and new two-wheelers along with long- term TP policy. It is clarified that it is the choice of the owner-driver to opt for a one- year CPA cover or long-term CPA cover and insurers should not compel owner- drivers to go in for long-term package policy or long-term CPA cover. Hence, all insurers are hereby directed to ensure that they necessarily offer the choice of one- year CPA cover to an owner-driver. 2. GR 36 (A) of the erstwhile India Motor Tariff (IMT) provides for compulsory cover to registered owner only where he/she holds a valid driving licence. Hence Compulsory PA cover is not applicable where a vehicle is owned by a company, a partnership firm or a similar body corporate or where the owner-driver does not hold a valid driving licence. Please acknowledge and confirm that you are complying with the above. (Y~~ rt B~ )41,, \\ ~ Chief General Manager (Non-life) ~ 'f. 11511 ,: =~='; ~s 1, ~-50~ 032, 'ITTTrf I Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India www.1rda1.gov.1n 6) : +91-40-2020 4000 Website : www.irdai.gov.in 7