Ref:IRDAI/NL/CIR/Motor/136/07/2022 Date : 05/07/2022
ALL GENERAL INSURERS CARRYING ON MOTOR INSURANCE BUSINESS
Re: Introduction of new add-ons in Motor Insurance
With a view to keeping pace with new developments in the market, especially involving the use of technology, and in order to provide more options for policyholders, the Authority, in terms of powers under Section 14 (2) (i) of IRDA Act, 1999 hereby permits general insurers to introduce the following concepts for the Motor Own Damage (OD) cover through the filing of appropriate add-ons to the basic OD policy on an annual basis:
- Pay As You Drive
- Pay How You Drive
- Floater policy for vehicles belonging to the same individual owner for two wheelers and private cars
2. Introduction of the above options will aid in giving the much needed fillip to Motor Own Damage Insurance and increase its penetration.
3. The extant guidelines for product designing and filing, including modified product filing procedure permitted vide Circular Ref: IRDAI/NL/CIR/MISC/107/6/2022 dated 1st June, 2022 shall continue to be applicable for the above proposed add-ons.
4.. This Circular shall come into effect immediately.
Yegna Priya Bharat
CGM (Non life)