Provide insurance cover to staff travelling in employers’ vehicle: IRDAI tells insurers

IRDAI has asked general insurers to provide cover to employees travelling in employer's vehicle. The Madras High Court had directed IRDAI to make IMT-29 compulsory as an in-built coverage for employees while issuing a private car policy for such vehicles. IMT stands for India Motor Tariff.

"All general insurers carrying on motor insurance business shall provide the cover to employees travelling in an employer's vehicle (including paid driver, if applicable) under IMT-29 of the Indian Motor Tariff, compulsorily as an in-built coverage while issuing private car policy for such vehicles," IRDAI said in a circular.

IRDAI further said the compulsory cover of IMT-29 should be provided as an in-built coverage under the Compulsory Motor Third Party Liability Section of Private Car Package/ Bundled Policies and under standalone policies insuring Compulsory Motor Third Party Liability.

Also, no additional premium should be charged until further directions, the regulator added.

The Madras High Court had said that it becomes a nightmare for claimants to recover compensation in cases where an employee meets with an accident — leading to severe injuries, or death — while travelling in an employer's vehicle. This leads to claimants' endless suffering, the court had said.