In order to enhance the safety and protection of employees traveling in their employer’s private vehicles, the Insurance Regulatory and Development Authority of India (IRDAI) has implemented changes to the Indian Motor Tariff 2002. Responding to directives from the Madras High Court, the IRDAI has made it mandatory for General Insurers to incorporate coverage for employees under IMT-29 (Indian Motor Tariff) as a built-in feature within private car insurance policies.
The specific provision, Clause (7)(ii) of IMT-29, addresses the legal liability of employees of the insured who are traveling in or driving the employer’s vehicle. This provision becomes crucial in cases where accidents occur, leading to injuries or fatalities for employees using their employer’s private vehicles.
Recognizing the importance of this issue, the Madras High Court directed the IRDAI to make IMT-29 an integral part of private car insurance policies for such vehicles. In response, the IRDAI, empowered by Section 14(2) of the Insurance Act 1938, issued directives to General Insurers engaged in motor insurance:
- General insurers involved in motor insurance are mandated to include coverage for employees traveling in the employer’s vehicle under IMT-29 as a compulsory, built-in feature when issuing private car policies for such vehicles.
- This compulsory cover under IMT-29 should be provided as an inbuilt feature under the Compulsory Motor Third Party Liability Section of Private Car Package/Bundled Policies and standalone policies insuring Compulsory Motor Third Party Liability.
- No additional premium shall be charged until further directions.
Before these changes, it was often hard for victims in such cases to get compensation, especially if they lost their main source of income or suffered serious injuries. The IRDAI’s move is meant to make the process smoother and ensure that employees in their employer’s private vehicles have enough coverage.
