As per this circular, customers would be required to buy only one year of compulsory personal accident (CPA) cover policy, and not a five-year cover as had been ruled by the regulatory body earlier.
This change will bring respite to the customers as it reduces the upfront cost of insurance by Rs. 2500/- depending on specific models.
The insurance companies had recently floated products and insurance covers of Personal Accident Insurance bundled with Third Party Insurance with tenure of five years, after the IRDA had issued directives to this effect.
However, the new circular from IRDA has directed general insurers to offer one-year CPA cover for the owner-driver.
Coming on the eve of Navratra, which signals the beginning of the festival season in the country, this has been welcomed by the customers as a very positive development, which will further contribute towards the growth of motorcycles.