New Delhi:
If you have a car or bike then this news is useful for you. There is going to be a big change in the rules of motor insurance soon. The Insurance Regulatory and Development Authority of India (IRDAI) is preparing to implement new rules for motor insurance from December 15, 2026. Under this, insurance for cars and two-wheelers will be divided into 4 different parts. The purpose of this change is to make insurance policies more transparent and to help customers understand what premium they are paying for. The new policy is also expected to be available on the Bima Sugam platform. In such a situation, if you are going to renew your car insurance, then do not take the decision just by looking at the premium. Understanding these 5 important things can be beneficial for you.
Understand the difference between essential and optional insurance covers
In the new structure, motor insurance will be divided into 4 parts. These include third party liability, legal liability cover for passengers traveling in the vehicle, personal accident cover and cover for damage to the vehicle. Third party insurance and personal accident cover will be necessary for the vehicle owner-driver. At the same time, own damage cover to protect the vehicle from damage and legal liability cover for passengers will be optional, meaning customers will be able to choose additional protection as per their need.
Check the passenger and pillion cover on the bike
In the new rules, there will be an option of optional legal liability cover for the passengers traveling in the car and the pillion rider on the bike. However, there will be some conditions in this. This cover will not be applicable to the vehicle owner, the insured person and their immediate family members i.e. spouse, parents and children. Apart from this, only as many passengers can be covered in the policy as the seating capacity of the vehicle is recorded in the Registration Certificate (RC). Therefore, while taking insurance, definitely check whether the people traveling regularly in your vehicle are getting adequate protection or not.
Also check personal accident cover
Personal accident cover will be necessary for the vehicle owner-driver. But if you want that other people driving, passengers or the person sitting behind the bike also get financial protection in case of an accident, then you can buy additional cover. Take this decision according to your needs. For example, if you have family members who regularly travel in your car, it may be useful to have additional protection for them.
Don’t ignore owner damage cover, IDV and deductible
Through own damage cover, you get protection against damage caused to your vehicle due to accident or theft. This cover may not be necessary, but considering the age of the vehicle, current market value and repair costs, it may be beneficial. Along with this, it is also important to understand IDV i.e. Insured Declared Value. This is the insured value of the vehicle, on the basis of which compensation is calculated in case of total loss or theft. At the same time, deductible is the amount which the vehicle owner has to pay from his own pocket at the time of claim. Therefore, while choosing a policy, check both these things thoroughly.
Please see the complete premium calculation and documents.
Under the new structure, insurance companies will have to provide separate premium information for each part of the policy. With this, customers will be able to understand how much money is being charged for covers like third party, personal accident and own damage. Apart from this, customers will be given Customer Information Sheet (CIS). It will contain information about the protection provided under the policy and its conditions. Also, through the customer option form, customers will be able to enter which insurance cover they want to take.
You can add additional cover to the old policy also
There is a provision in the new rules to provide relief to existing policyholders also. If a customer requires legal liability cover for passengers or pillion rider during the policy term, he can add it to his existing policy by paying an additional premium. For this, he will not need to cancel his old third party insurance policy.
Source: ndtv.in
