New FLASH SALE Dhamaka - Flat 60% Off on All Courses

    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?
    A No additional premium will be charged Correct Answer Incorrect Answer
    B 10% of the total premium Correct Answer Incorrect Answer
    C A fixed amount of Rs 500 per year Correct Answer Incorrect Answer
    D It varies based on the vehicle's make and model Correct Answer Incorrect Answer
    E 20% of the total premium Correct Answer Incorrect Answer

    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.

    Practice Next