Buying your 2nd vehicle? The latest move by IRDAI might save you some money

IRDAI regulates CPA

? Cool Title, but what’s the news?

From the 1st of January, 2019, vehicle owners will not have to purchase separate compulsory personal accident (CPA) cover for each new vehicle they buy. The insurance regulator is all set to unbundle the CPA cover and allow issuing of a standalone CPA cover for the owners.

? Okay, but what does it mean?

Today, anyone purchasing a vehicle has to mandatorily take a personal accident cover of Rs 15 lakh, at cost of Rs 750, with their vehicle insurance. And this personal cover needs to be taken with every vehicle insurance policy. With this move, there’s now a possibility of taking standalone Personal Accident (PA) cover where a single PA cover can be taken for multiple vehicles.

? Why should I care?

The motive of this cover is to insure the driver and in case you have multiple vehicles, you may end-up buying CPA cover for more than one vehicle, which is unnecessary. As and when the new regulation comes into effect, you’d be able to save Rs. 750 on the purchase of every new vehicle.

Source: Livemint

Written by

Anand Vatsya