Question
What is the additional premium charged for including the
coverage for employees traveling in their employer's vehicle in motor insurance policies, according to IRDAI's directive?Solution
Insurance Regulatory and Development Authority of India (IRDAI) has directed insurance companies providing motor insurance to compulsorily include an inbuilt feature in the Third Party policy (TP) that will give coverage to employees who travel in their employer's vehicle.IRDAI also added that no additional premium will be charged until further directions are issued. This applies when issuing third-party insurance as per the IMT-29 of the Indian Motor Tariff and when issuing insurance to private car policies for such vehicles. The insurance coverage will be provided as an inbuilt feature under the compulsory Motor Third Party Liability Section of Private Car Package or Bundled Policies and under standalone policies insuring Compulsory Motor Third Party Liability.
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