Neutral impactSector
IRDAI mandates four-layer motor insurance structure from December 15
BusinessLine 1 hr ago·3 Nov 2026, 3:58 pm
From December 15, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a new four-layer structure for motor insurance policies. This framework categorizes coverage into four distinct tiers: basic cover, standard cover, comprehensive cover, and a top-up cover. The primary goal is to simplify the product structure, making it easier for customers to understand the specific benefits and exclusions of each plan.
This regulatory change is significant for investors as it aims to reduce confusion in the market. By clearly defining the layers, consumers can make more informed choices, which could lead to better product alignment with their needs. This move may also encourage greater transparency and competition among insurance providers, potentially benefiting the broader insurance sector in the long run.
Going forward, investors should monitor how insurance companies adapt their product portfolios to this new structure. The success of this reform will depend on how effectively insurers communicate the new options to retail customers. Watch for any shifts in policy sales or changes in customer retention rates as the industry adjusts to these new regulations.
Excerpt from BusinessLine
This will bring clarity on availability of various policy options to vehicle-owners to make an informed decision In line with the directions of the Supreme Court, the Insurance Regulatory and Development Authority of India (IRDAI) has directed general insurers to implement a four-layer motor insurance policy structure…Read the original at BusinessLine
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