There is big news regarding motor insurance for car and bike owners. Motor insurance rules are going to change from 15th December 2026. IRDAI’s new 4-tier motor insurance system will come into force. After this customers will get the option to choose the insurance cover as per their requirement. That means it will not be mandatory to take all types of cover together. However, third party insurance will be mandatory in the new system as well.
Third party insurance required, freedom to choose remaining cover
Third party insurance will be mandatory under the new rules. That means vehicle owners have to take this cover. However, taking out liability cover for passengers and rear seat passengers will be optional. This means that customers can decide for themselves whether to take this cover or not as per their needs. Similarly, ‘Own Damage’ cover for damage to one’s own vehicle can also be selected separately. For this there will be no compulsion to take all the covers together.
Now the premium of each insurance cover will be displayed separately
As per the new rules, insurance companies will have to display the premium for each cover separately. So that the customer clearly understands how much he is paying for which cover. With this system, the customer will get transparent information about the cost of each cover while purchasing the policy and can take the right decision according to his needs.
Customer Option Form has to be given while buying the policy
Under the new system, it will be mandatory for the insurance companies to give the customer option form and information sheet to the customers while buying the policy. These documents will provide the customers with all the important information regarding the insurance cover. This will make it easier for them to understand which cover they are opting for and how much premium they have to pay for it.
Customers who already have a third party policy will also get the option
The new rules also provide special facilities for motorists who already have a third party insurance policy. Such customers can also add additional passenger cover to their existing policy by paying an additional premium. That means they will have full option to add additional cover as per their requirement.
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