Motor Vehicle Insurance Rules: Soon, owners of cars and other motor vehicles may be asked to pay premium to provide for medical expenses coverage up to Rs 25,000 for occupants travelling in the vehicle!
Motor Vehicle Insurance Rules: Soon, owners of cars and other motor vehicles may be asked to pay premium to provide for medical expenses coverage up to Rs 25,000 for occupants travelling in the vehicle, if a recommendation by the Working Group of Insurance Regulatory and Development Authority of India (IRDAI) is accepted. The Working Group has recommended that all occupants travelling in a motor vehicle should have Rs 25,000 medical expenses coverage to meet the costs arising out of accidents. Also, the insurer can charge an appropriate premium for this.
IRDAI’s ‘Working Group on Product Structure for Motor Own Damage Cover’ has recommended: “all the occupants travelling in Motor vehicles shall have Rs. 25,000/- medical expenses coverage arising out of an accident to the insured vehicle covered under the basic policy and appropriate premium for this shall be charged by the insurers.”
The Working Group has proposed to “have in built Accidental Medical expenses coverage (indemnity basis) for all occupants traveling in all motor vehicles as per their registered seating capacity. The coverage proposed is Rs. 25,000 per person for all classes of vehicles.”
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The Working Group said in its report that such a cover will help accident victims get immediate treatment.
The benefit of the new proposal, if accepted, will not be payable when the “number of persons/ passengers traveling in the insured vehicle is more than the number specified in the registration certificate valid at the time of occurrence of such incident,” the recommendation said.
As per the recommendations, the following cases will be excluded from the benefit of the new proposal:
– Expenses related to a sickness, pre-existing disease, disease or medical disorder not directly consequential to accident.
-Expenses towards psychosomatic disorders of any kind, whether caused or accentuated by accident or otherwise.
-Expenses for any physiotherapy treatment.
– Expense not supported by an original and valid bill/receipt and related prescription of the attending Medical Practitioner / Hospital / Nursing Home.
– Expenses when the treatment is started after 24 hours from the date of Accident
– Expense arising or resulting from or traceable to intentional self-injury, suicide or attempted suicide physical defect or infirmity.
– Expense arising or resulting from or traceable to an accident whilst the insured or any person driving the vehicle with the knowledge and consent of the insured, is under the influence of intoxicating liquor or psychotropic or narcotic substances.
The recommendations of the working group have been put in the public domain for comments from stakeholders by December 16, 2019.