The compulsory cover has to be provided as an inbuilt coverage under the Compulsory Motor Third Party Liability Section of Private Car Package/ Bundled Policies and under standalone policies insuring Compulsory Motor Third Party Liability and no additional premium can be charged, said the IRDAI
Hyderabad:
The IRDAI has now made it mandatory for all general insurers carrying on motor insurance business to provide the cover to the employees travelling in employer’s vehicle (including paid driver, if applicable) compulsorily as an inbuilt coverage while issuing private car policy for such vehicles.
The compulsory cover of IMT(Indian Motor Tariff)-29 has to be be provided as an inbuilt coverage under the Compulsory Motor Third Party Liability Section of Private Car Package/ Bundled Policies and under standalone policies insuring Compulsory Motor Third Party Liability and no additional premium can be charged, said the IRDAI on Wednesday.
Recently, in one of its judgment, the Madras High Court has issued directions to IRDAI to make IMT-29 compulsory as an inbuilt coverage for employees while issuing a private car policy for such vehicles.
The Madras High Court, in United India Insurance , Vs Ilakkiyamathi & others observed that in cases of employees travelling in the private vehicles of the employers, met with an accident and got injured or faced untimely death, it becomes a nightmare for the claimants to recover compensation from the employer. This leads to claimants to suffer endlessly having lost their sole breadwinner or having suffered injuries.