IRDAI orders four‑layer motor cover for new cars and bikes from Dec 15

IRDAI has told all general insurers that from Dec 15 they must sell a four‑layer motor insurance policy for every new private car and two‑wheeler. The cover includes mandatory third‑party liability and personal accident cover for the owner, plus optional legal liability for occupants or pillion riders (including employees), optional personal accident cover for occupants or pillion riders (including any driver other than the owner), and optional own‑damage cover. Optional layers are available on payment of an extra premium. Customers must fill an option form, either online or offline, and the completed form is mandatory for all policies in this vehicle category. The insurer’s schedule must list the exact coverage and premium for each layer in clear, uniform wording. The move follows a Supreme Court order that asked IRDAI, the General Insurance Council and insurers to create uniform policy wordings and give vehicle owners clear choices. The Court wanted owners to know what each cover does before buying. Insurers must also issue a Customer Information Sheet at the point of sale. They can still design the own‑damage cover and set its price according to market forces. Existing policies can add the optional parts by paying extra. The regulator says transparency and choice are the main goals of the new four‑layer structure.## Context The four‑layer policy groups the common motor‑insurance covers into mandatory and optional parts, making it easier for owners to see what they are paying for and to add extra protection if they wish.