The new directive was issued after the Madras High Court asked to make India Motor Tariff-29 compulsory as an in-built coverage for employees while issuing a private car policy for such vehicles.
The IRDAI, in response to directives by the Madras High Court, has introduced changes to the Indian Motor Tariff 2002, making it compulsory for General Insurers to include coverage for employees under IMT-29 (Indian Motor Tariff) as an inbuilt feature within private car insurance policies.
Insurance Regulatory and Development Authority of India (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.