IRDAI mandates all General Insurers carrying on motor insurance business to provide insurance to the employees travelling in employer’s vehicle

IRDAI vide circular dated 18th October, 2023, In accordance with the above directions of the Hon’ble Madras High Court, in exercise of the powers conferred by Section 14(2) of Insurance Act 1938, has issued the following directions:

1. All General Insurers carrying on motor insurance business shall provide the cover to the employees travelling in employer’s vehicle (including paid driver, if applicable) under IMT-29 of the Indian Motor Tariff, compulsorily as an inbuilt coverage while issuing private car policy for such vehicles.
2. The compulsory cover of IMT-29 shall be provided as an inbuilt coverage under the Compulsory Motor Third Party Liability Section of Private Car Package/ Bundled Policies and under standalone policies insuring Compulsory Motor Third Party Liability.
3. No additional premium shall be charged until further directions.