Provide insurance cover to staff travelling in employers’ vehicle: Irdai tells insurers

Insurance coverage regulator Irdai on Wednesday requested normal insurers to supply cowl to staff travelling in employer’s car. The Madras Excessive Courtroom had directed Irdai to make IMT-29 obligatory as an in-built protection for workers whereas issuing a non-public automotive coverage for such automobiles. IMT stands for India Motor Tariff.

“All normal insurers carrying on motor insurance coverage enterprise shall present the duvet to staff travelling in an employer’s car (together with paid driver, if relevant) underneath IMT-29 of the Indian Motor Tariff, compulsorily as an in-built protection whereas issuing personal automotive coverage for such automobiles,” Irdai stated in a round.

Insurance coverage Regulatory and Improvement Authority of India (Irdai) additional stated the obligatory cowl of IMT-29 needs to be offered as an in-built protection underneath the Obligatory Motor Third Occasion Legal responsibility Part of Personal Automotive Package deal/ Bundled Insurance policies and underneath standalone insurance policies insuring Obligatory Motor Third Occasion Legal responsibility.

Additionally, no further premium needs to be charged till additional instructions, the regulator added.

The Madras Excessive Courtroom had stated that it turns into a nightmare for claimants to get well compensation in instances the place an worker meets with an accident — resulting in extreme accidents, or loss of life — whereas travelling in an employer’s car.

This results in claimants’ countless struggling, the courtroom had stated.