The insurance regulator IRDAI has operationalized a four-layer motor insurance framework that applies from December 15, 2026. The model separates mandatory third-party liability and personal accident cover from additional optional components for vehicle owners. Insurers are required to provide a Customer Information Sheet and obtain an option form for each policy issued. Policyholders can also add liability cover for occupants during the policy period by paying an extra premium.
The directive is presented as a response to a Supreme Court order. Across reports, the four layers are described as third-party liability, legal liability to occupants, personal accident, and own damage. Some outlets focus on what the structure changes for policy buyers, highlighting clearer choice among policy options, while others emphasize the timing and the regulator’s compliance requirements for how policies must be offered and documented.
