Irdai mandates four-tier structure for motor insurance from Dec 15

What happened: Irdai mandated a four-tier motor insurance structure from Dec 15, requiring general insurers to adopt uniform policy wordings and issue a customer option form and Customer Information Sheet at the point of sale. Key numbers: Effective Dec 15. Four layers: mandatory third-party liability, optional occupant legal liability, personal accident cover, optional own-damage. Why it matters: The change follows a Supreme Court direction in National Insurance Co versus Thungala Dhana Laxmi, which sought a four-layer structure to help vehicle owners make informed choices.

Irdai mandated a four-tier motor insurance structure from Dec 15, requiring general insurers to adopt uniform policy wordings and issue a customer option form and Customer Information Sheet at the point of sale.

The change follows a Supreme Court direction in National Insurance Co versus Thungala Dhana Laxmi, which sought a four-layer structure to help vehicle owners make informed choices.