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Latest Changes in Compulsory Personal Accident Cover 2021

The Motor Vehicle Act of 1988 mandates car insurance for all car owners in India. With the advent of digital technology, you can not only view car insurance quotes online and compare them but can also buy car insurance online. Earlier, only a third-party liability cover, under a car insurance policy, was mandatory. However, with the rising number of road accidents and cases of injuries and losses to owner-drivers, getting a personal accident cover has been made compulsory now. A compulsory personal accident cover provides coverage to the owner-driver in case they suffer a permanent disability or pass away in an accident while riding or driving their insured vehicle.

According to the IRDAI, there are several personal accident (PA) insurance products in the market with varying features, making it hard for the public to choose a suitable one. So, to make it easy for the public, on December 9, 2020, the Insurance Regulatory and Development Authority of India (IRDAI) proposed that starting April 1, 2021, all general and standalone health insurers must offer Saral Suraksha Bima, a standard personal accident product “with common coverage and policy wordings across the industry." The term of this standard policy will be one year.

Some of the features of Saral Suraksha Bima are:​