The Insurance Regulatory and Development Authority of India (IRDAI) has set December 15, 2026, as the deadline for general insurers to offer a four-layer motor insurance policy for new private cars and two-wheelers.
The directive follows a Supreme Court order mandating a motor insurance structure that covers four areas: third-party liability, legal liability to occupants, personal accident cover and damage to the insured vehicle.
The proposed policy will combine mandatory and optional components. While the mandatory covers will form part of the required insurance structure, customers can choose additional optional protection by paying an extra premium.
The four components address different aspects of motor insurance. Third-party liability covers legal responsibility towards others, while legal liability to occupants relates to specified liabilities involving people travelling in the insured vehicle. Personal accident cover provides protection against specified accident-related risks, and own-damage cover applies to damage to the insured vehicle.
IRDAI's deadline requires all general insurers to make the four-layer policy available for new private cars and two-wheelers from December 15.
The change is aimed at establishing a broader motor insurance structure by bringing different forms of protection under one policy framework. However, the exact terms, conditions, exclusions and premium implications will depend on the policy offered by individual insurers.
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