Monday, December 14, 2009

Motor Insurance Scope Widened

All occupants of a private car and the pillion rider on a motorcycle are now covered under a comprehensive insurance policy.

The Delhi High Court has ruled that the families of pillion riders of two-wheelers and car passengers who die in road accidents will now be eligible for monetary compensation from insurance companies.
In a circular to the general insurance companies, Insurance Regulatory and Development Authority (IRDA) has said that injury to or death of an occupant in an insured private car and pillion rider on a two-wheeler is liable to be covered by the standard motor package policy (also called comprehensive policy) under the liability for third parties (TPL).

Seventeen insurance companies providing such comprehensive insurance policy have agreed to implement the extended cover with immediate effect and comply with an IRDA circular of November 16 relating to the liability of insurance companies.

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