New Year Offer: From January 1, Those Owning More Than One Car Can Buy Just One Personal Accident Insurance Cover 

Those in India, who own two or more cars, will now be provided with a choice to either buy a single Compulsory Personal Accident (CPA) cover to protect their person or purchase them alongside a third-party insurance bundle for each vehicle, reports The Hindu BusinessLine.

Such a single CPA cover will come with a validity of one year and will extend to all the vehicles purchased by the policyholder. These changes will come into force on 1 January 2019.

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“Feedback has been received from various quarters wherein it has been pointed out that many owner-drivers already have existing general personal accident covers which ought to be taken cognisance of. Many people own more than one vehicle and should not have to buy separate CPAs for each vehicle,” the Insurance Regulatory and Development Authority of India (IRDAI) said in a circular.

In September 2018, IRDAI raised the limit for CPA for driver-owner vehicles from Rs 2 lakh to Rs 15 lakh. It also increased the premium from Rs 100 for cars, excluding taxes, to Rs 750.

Also, according to the new Supreme Court ruling, customers making car purchases after 1 September (2018) will have to buy a three-year third-party insurance policy mandatorily. Also, a portion of the same will have to be upfront in the first year itself.