InvestorQ : What are the implications of the latest announcement of IRDA on packaged car insurance policies?
Anu Biswas made post

What are the implications of the latest announcement of IRDA on packaged car insurance policies?

Answer
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Neelam Naik answered.
3 months ago


IRDA has asked for all packaged motor insurance products to be withdrawn from August 1, 2020. The IRDA has stipulated that the distribution of any package policies combining multiple products has its challenges due to affordability factors for a large section of vehicle owners. As per the latest IRDA order, insurers will have to offer buyers of insurance an option to choose between one year and multi-year OD plans. The OD is not concerned with the core third party risk but covers damage to vehicles from accidents, acts of god, theft etc. as of now, only third party insurance is mandatory when taking car insurance. IRDA wants to make valid insurance cover applicable for cars for 3 years. IRDA has been about the potential for mis-selling in such packages.