The Insurance Regulatory and Development Authority of India (IRDAI) on October 18, 2023, notified regarding the mandating of coverage, payment of premium under IMT-29 compulsory as an inbuilt coverage in a private car policy.
The Hon’ble Madras High Court, in CMA No. 2166 of 2019 & CMP No. 8871 of 2019 (United India Insurance Co. Ltd., Vs Ilakkiyamathi & others) issued directions as follows:
• All General Insurers carrying on motor insurance business shall provide cover to the employees travelling in the employer’s vehicle (including the 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.
• 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.
• No additional premium shall be charged until further directions.
[Notification No. IRDAI/NL/CIR/MOTOR/178/10/2023-24]
