📷 Image: Wikimedia Commons / Van Goens, Daniël (1858-1904). Compositeur
Automobile
IRDAI to Roll Out Four‑Tier Motor Insurance Framework from Dec 15
✍️ Telangana Today
🗓 05 Nov 2026, 05:04 AM
👁 13
The Insurance Regulatory and Development Authority of India announced that a new four‑layer motor insurance structure will become effective on December 15, aiming to streamline coverage tiers.
New Delhi – The Insurance Regulatory and Development Authority of India (IRDAI) issued a directive that a four‑layer structure for motor insurance policies will take effect from December 15. The move is intended to bring greater clarity and uniformity to vehicle insurance products across the country.
Under the new framework, motor insurance policies will be grouped into four distinct tiers, each with defined coverage limits and premium brackets. Insurers will be required to align their offerings with these categories, ensuring that customers can compare plans more easily.
IRDAI officials said the tiered system is expected to reduce confusion among policyholders, promote fair pricing, and strengthen consumer protection. Insurers have been instructed to adjust their product portfolios before the launch date to comply with the regulator’s guidelines.
The authority will monitor implementation closely and may issue further guidelines to address any operational challenges that arise during the transition period.
Under the new framework, motor insurance policies will be grouped into four distinct tiers, each with defined coverage limits and premium brackets. Insurers will be required to align their offerings with these categories, ensuring that customers can compare plans more easily.
IRDAI officials said the tiered system is expected to reduce confusion among policyholders, promote fair pricing, and strengthen consumer protection. Insurers have been instructed to adjust their product portfolios before the launch date to comply with the regulator’s guidelines.
The authority will monitor implementation closely and may issue further guidelines to address any operational challenges that arise during the transition period.