Puneet Sahni, head product development SBI Car Insurance supports IRDAI for the mandatory accident cover of Rs. 15 Lakhs. He also acknowledges that earlier the premium of the compulsory personal accident (CPA) was just Rs. 100 for four wheelers. Risk covered was proportionate up to Rs 2 lakhs at time of accident. Now all vehicle owners need to pay a mandatory premium of Rs. 750 for newly purchased car or at the time of renewal. This amount needs to be paid for the minimum period of 3 years in case of your four wheelers as per new rule of IRDAI.
Earlier SBI was providing additional accident cover above Rs.2 lakhs as an add-on that can go up to Rs. 50 lakhs. Now the add-on will be applicable after the minimum cover of Rs. 15 lakh, it can go up to Rs Fifty lakhs. Sahni said earlier people use to take an add-on till Rs 10,00,000 only. Puneet appreciated this new rule as he feels it’s going to be beneficial to the vehicle owners as their life risk will be covered while traveling in their own vehicles. In the event of an accident, this policy will cover the owner, even if he’s not driving.